For Several Years,a Client's Physical Inventory Count Has Been Lower

question 45

Multiple Choice

For several years,a client's physical inventory count has been lower than what was shown on the books at the time of the count so that downward adjustments to the inventory account were required.Contributing to the inventory problem could be weaknesses in internal controls that led to the failure to record some

• A) Purchases returned to vendors.
• B) Sales returns received.
• C) Sales discounts allowed.
• D) Cash purchases.

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Definitions:

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Abatement

The reduction in the degree or intensity of pollution.

Types of Garbage

Refers to various categories of waste materials, including organic waste, recyclable materials, hazardous waste, and others, each requiring different disposal methods.

Charged Differently

A scenario where different prices are applied for the same service or product to different customers or in different circumstances.