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

question 66

Multiple Choice

The audit of year-end physical inventories should include steps to verify that the client'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:

Fast Food Restaurant

A dining establishment that offers quick service, convenience, and food served fast, often from a limited menu.

Customers Arrive

The process or event of clients or patrons reaching a service point or facility where they expect to receive a service or product.

Exponential Distribution

A statistical distribution used to model the time between events in a process where events occur continuously and independently at a constant rate.

Bank Teller

An employee of a bank who deals directly with customers, handling withdrawals, deposits, and other transactions.