Comparing the Physical Counts with the Perpetual Inventory Master Files

question 132

Multiple Choice

Comparing the physical counts with the perpetual inventory master files satisfies the balance-related audit objective of

• A) classification.
• B) observation.
• C) completeness.
• D) accuracy.

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Definitions:

Payoffs

The outcomes or rewards received as a result of a decision or action, often evaluated in decision-making processes to anticipate different scenarios' benefits or drawbacks.

Clearance Priced

Reduced pricing strategies applied to products or inventory intended to be sold quickly, often to make room for new stock or to eliminate excess.

Demand Patterns

The trends or tendencies in consumer demand over time, which can vary due to seasonality, market changes, or other factors.

Expected Value

A calculated average of all possible values for a random variable, weighted by their respective probabilities, often used in statistics, economics, and finance.