The Accuracy of Perpetual Inventory Records May Be Established, in Part

question 33

Multiple Choice

The accuracy of perpetual inventory records may be established, in part, by comparing entries on the perpetual records with details from:

• A) receiving reports.
• B) purchase requisitions.
• C) vendor payments.
• D) purchase orders.

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Definitions:

Instrument

A formal legal document, such as a contract, will, promissory note, or warrant, that establishes rights, privileges, or liabilities.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money, either on demand or at a specified future date.

Fraudulently Changes

The act of deceitfully altering information or documents with the intent to gain an unauthorized benefit or to deceive others.

Forged Indorsement

occurs when someone unlawfully signs another person's name on a financial document, such as a check, without authorization.