Meters Will Become Inaccurate Over Time and Recalibration May Be

question 39

True/False

Meters will become inaccurate over time and recalibration may be necessary to bring a meter back to its intended level of accuracy.

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Definitions:

Periodic Inventory System

An inventory accounting practice where physical counts are performed at specific intervals to determine the cost of goods sold and ending inventory levels.

Voucher System

A method for processing accounts payable where a document (voucher) is prepared for every payable transaction, detailing the goods or services received, amounts to be paid, authorization, and accounts to be charged.

Net Method

An accounting method for recording purchases at the net of any trade discounts or rebate.

Discount Period

The amount of time the bank holds a note that was discounted until the maturity date.