Before an Accountant Can Properly Audit an Accounting System,they Must

question 58

Short Answer

Before an accountant can properly audit an accounting system,they must understand _____ so that they can follow transactions through the system.

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Definitions:

Perpetual Inventory System

An inventory management method where updates to the inventory account occur continuously as transactions happen.

Weighted-Average Method

An inventory costing method that averages the cost of all similar goods available during the period.

Periodic Inventory

An inventory system where the inventory count and cost of goods sold calculations are conducted at specific intervals.

FIFO

FIFO (First-In, First-Out) is an inventory valuation method where goods first purchased or produced are the first ones sold.