Match Each Definition with the Correct Term Below

question 22

Multiple Choice

Match each definition with the correct term below.
-Purchases account

• A)An inventory system in which the inventory not yet sold or on hand is counted periodically.
• B)Management's regular assessment of the quality of internal control.
• C)An account that accumulates the total cost of merchandise purchased for resale during an accounting period.
• D)The policies and procedures that management puts into place to see that its directives are carried out.
• E)The seller bears the transportation costs to the place where merchandise is delivered and title passes at the time it is delivered.
• F)An inventory system in which continuous records are kept of the quantity and cost of individual items as they are bought and sold.
• G)The total cost of merchandise that could be sold in an accounting period.
• H)The buyer bears the shipping costs of merchandise and title passes at the time it is shipped.
• I)An account that gives management a readily available measure of unsatisfactory products and dissatisfied customers.
• J)Controls that limit access to assets.

Appreciate the unique dynamics and considerations in family-owned businesses.

Understand the role of different settlement entities in closing business transactions.

Identify methods for protecting against unknown liabilities in business acquisitions.

Understand the concept and importance of due diligence in the process of buying a business.

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Definitions:

Service Delivery

The process of providing services to customers, clients, or citizens in an efficient and satisfactory manner.

Rapid Assessment

A quick evaluation or analysis of a situation or system to gather essential information efficiently.

Reliable

The quality of being consistently good in performance, accuracy, or dependability.

Valid

Well-founded on evidence and logic, or meeting the relevant criteria or standards.