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:

Profit Objectives

Financial goals that a business aims to achieve, typically measured in terms of net income or margin.

Sales Forecasting

The process of estimating future sales volumes based on historical data, market trends, and analysis.

Industrial Products

Goods produced and used in industrial processes, including machinery, equipment, and materials, distinct from consumer products sold for personal use.

Market Tests

Trials conducted in a specific geographic area or with a targeted group of consumers to evaluate the potential success of a new product, service, or marketing strategy before a wider launch.