The Audit of Year-End Physical Inventories Should Include Steps to Verify

question 31

Multiple Choice

The audit of year-end physical inventories should include steps to verify that the entity's purchases and sales cutoffs were adequate. The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a

• A) Sale in the subsequent period.
• B) Purchase in the current period.
• C) Sale in the current period.
• D) Purchase return in the subsequent period.

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Definitions:

Program Early

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Federal Loans

Government-issued loans intended to cover education costs for students, typically coming with fixed interest rates and specific repayment terms.

Credit Card Responsibility and Disclosure Act

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Independent Income

Earnings obtained from sources other than traditional employment, such as investments, royalties, or business ventures, providing financial autonomy.