The Most Important Part of the Observation of Inventory Is

question 43

Multiple Choice

The most important part of the observation of inventory is to determine whether

• A) all counts are accurate.
• B) the inventory-takers are qualified.
• C) obsolete inventory has been identified.
• D) the physical count is being taken in accordance with the client's instructions.

---

Definitions:

Compounded Semi-annually

The process of applying interest to both the principal amount and any accumulated interest every six months.

RRSP

A Registered Retirement Savings Plan, which is a retirement savings and investing vehicle for employees and the self-employed in Canada, offering tax benefits.

Maturity Value

The amount of money an investment will grow to over a period of time at a specified interest rate.

Interest Rate

The percentage of a loan that is added on as interest for the borrower, usually stated as an annual rate.