From the Auditor's Point of View,inventory Counts Are More Acceptable

question 8

Multiple Choice

From the auditor's point of view,inventory counts are more acceptable prior to the year-end when:

• A)Internal control is weak.
• B)Accurate perpetual inventory records are maintained.
• C)Inventory is slow-moving.
• D)Significant amounts of inventory are held on a consignment basis.

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Definitions:

Expected Return

The anticipated return on an investment, calculated based on the probabilities of various outcomes.

Portfolio

A collection of financial assets such as stocks, bonds, commodities, currencies, and cash equivalents held by an investment company, institution, or individual.

Portfolio

A group of financial instruments comprising equities, debentures, commodities, liquid assets, and near cash items, in addition to closed-end funds and exchange traded funds (ETFs).

Alpha Stock

A stock that is expected to outperform the broader market, typically showing a positive alpha indicating better than expected returns.