An Auditor Would Be Most Likely to Learn of Slow-Moving

question 84

Multiple Choice

An auditor would be most likely to learn of slow-moving inventory through:

• A) review of the cash payments journal.
• B) inquiry of sales personnel.
• C) review of perpetual inventory records.
• D) physical observation of inventory.

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Definitions:

Federal Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, according to federal tax brackets.

British Columbia Resident

An individual who lives in or maintains a residency in the province of British Columbia, Canada.

Interest Income

Income earned by an individual or company from lending money or from investments in interest-bearing accounts.

Capital Gains

The profit from the sale of an asset or investment.