In the Audit of Inventory, the Entity Is Responsible for Actually

question 1

True/False

In the audit of inventory, the entity is responsible for actually making and recording the count of physical inventory; the auditor's responsibility is to evaluate and observe the entity's procedures and draw conclusions about the adequacy of the physical inventory.

---

Definitions:

Marginal Costs

The increase or decrease in the total costs incurred by producing one additional unit of a product or service.

Resources Scarcity

The economic problem of having seemingly unlimited human wants in a world of limited resources.

Consumer's Income

The total amount of earnings available to an individual or household to spend or save after taxes.

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given budget at current prices.