Controls Which Provide a Means of Ensuring That the Physical

question 21

Multiple Choice

Controls which provide a means of ensuring that the physical counts are properly summarised, priced at the same amount as the unit records, correctly extended and totalled, and included in the general ledger at the proper amount are known as:

• A) pricing internal controls.
• B) inventory compilation controls.
• C) count quantity internal controls.
• D) standard cost controls.

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Definitions:

Present Value

The present value of anticipated future cash flows or sums of money, calculated with a given rate of earnings.

Net Cash Flow

The difference between a company's cash inflows and outflows during a specific period, providing insight into its financial health and liquidity.

Internal Rate Of Return

The discount rate at which the net present value of all the cash flows from an investment equal zero.

Present Values

The current worth of a future sum of money or stream of cash flow given a specified rate of return.