An Effective Method of Internal Control Is Periodically Comparing/reconciling Actual

question 14

Multiple Choice

An effective method of internal control is periodically comparing/reconciling actual assets with accounting records.How is this most easily accomplished?

• A)Physically count inventory and compare the value of the inventory with the market to ensure inventory is not devaluing.
• B)Compare a physical count of inventory to purchase orders maintained in accounting files.
• C)Compare what is recorded in the accounting records with the purchase orders maintained in the accounting files.
• D)Physically count inventory on hand and compare it with what is recorded in the accounting records.

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Definitions:

Missing Value

Data that is absent from a dataset, which can occur for various reasons and potentially impact analyses.

Calculate

To ascertain by computation; determine by mathematical means.

Economic Value

The worth of a good or service determined by the market, reflecting its utility, scarcity, and consumers' willingness to pay.

Equivalent

Equal in value, measure, force, effect, significance, etc.