For Several Years, an Entity's Physical Inventory Count Has Been

question 52

Multiple Choice

For several years, an entity's physical inventory count has been lower than what was shown on the books at the time of the count so that downward adjustments to the inventory account were required. Contributing to the inventory problem could be weaknesses in internal controls that led to the failure to record some:

• A)purchases returned to vendors.
• B)sales returns received.
• C)sales discounts allowed.
• D)cash purchases.

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Definitions:

Theorizing

Formulating theories or systematic ideas about how certain aspects of the world work, often based on observation, experimentation, and reasoning.

Psychogenic Need

A term referring to emotional or psychological needs that influence an individual's mental health and behavior, rather than physical needs.

Basic Elements

Fundamental components or building blocks that form the basis or essentials of a larger system, concept, or structure.

Trait Approach

A methodology in psychology focused on the identification and measurement of specific personality traits as key components in understanding human behavior.