What Is the Internal Control Advantage of Using the Net

question 34

Multiple Choice

What is the internal control advantage of using the net method of accounting for merchandise purchases?

• A)It highlights the inefficiency of losing purchase discounts.
• B)It guarantees that all purchase discounts will be taken.
• C)It automatically increases a firm's cash balance.
• D)It results in a higher quality of inventory on hand for customers.

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Definitions:

Null Hypothesis

A hypothesis in statistical analysis that assumes no significant difference or association, typically set as the default to test against an alternative hypothesis.

Type I Error

A statistical error that occurs when a true null hypothesis is incorrectly rejected.

Type II Error

The statistical error that occurs when one fails to reject a false null hypothesis.

GPAs

A numerical measure that indicates a student's average grade across courses, typically on a scale from 0.0 to 4.0.