Internal Controls Have Four Basic Purposes in Organizations

question 50

Short Answer

Internal controls have four basic purposes in organizations.Please match each item on the left with the most relevant purpose on the right.

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Definitions:

Estimated Returns Inventory

The provision of goods that are expected to be returned by customers, considered in inventory and financial accounting.

Inventory Shrinkage

The loss of inventory that occurs due to theft, damage, or administrative errors, leading to discrepancies between recorded inventory and actual stock levels.

Adjusting Entry

An accounting record created at the conclusion of a fiscal period to distribute revenues and expenses to the period they truly belong to.

Physical Inventory

A process of counting and verifying the actual quantities of inventory on hand, typically conducted at the end of an accounting period.