To Be Effective, Controls Need to Be Accepted by the People

question 9

True/False

To be effective, controls need to be accepted by the people they affect.

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Definitions:

Inventory On September 30

The stock of goods a company has available for sale or used in production as recorded on September 30th.

Inventory Cost Flow Assumptions

Accounting methods assumed about how costs flow through inventory; basic types include FIFO, LIFO, and weighted average.

Financial Statements

Documented records that outline the financial activities and conditions of a business, including the balance sheet, income statement, and cash flow statement.

Perpetual Inventory System

A perpetual inventory system is an accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.