Inventory Is Often a Significant Part of a Company's Current

question 58

Multiple Choice

Inventory is often a significant part of a company's current assets. Because of its importance,

• A) auditors are required by auditing standards to observe the client taking a physical inventory count.
• B) price tests must be performed to verify whether the physical counts were correctly summarized.
• C) companies are required to use perpetual inventory systems.
• D) auditors are required by auditing standards to take the physical inventory for the client.

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Definitions:

Central Nervous System

The complex network of nerves and cells that includes the brain and spinal cord, responsible for coordinating sensory information and response.

Peripheral Nervous System

The component of the nervous system that includes nerves and ganglia situated outside the brain and spinal cord.

Nervous System

A complex network of nerves and cells that transmit signals between different parts of the body to coordinate actions and sensory information.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and coordinating information from the body.