Which of the Following Control Activities Would Most Likely Be

question 54

Multiple Choice

Which of the following control activities would most likely be used to maintain accurate perpetual inventory records?

• A)Independent storeroom count of goods received.
• B)Periodic independent reconciliation of control and subsidiary records.
• C)Periodic independent comparison of records with goods on hands.
• D)Independent matching of purchase orders, receiving reports, and vendors' invoices.

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Definitions:

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

Share-based Compensation

A form of remuneration where employees receive shares of the company's stock as part of their compensation package.

IFRS

The International Financial Reporting Standards are a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial statements and are recognized by many countries.

GAAP

Generally Accepted Accounting Principles, a framework of accounting standards and procedures used in the United States by accountants to compile financial statements.