Which Statement Below Is Strength in Controls Over Inventory

question 200

Multiple Choice

Which statement below is Strength in controls over inventory?

• A)Have an employee order the merchandise and also be the one to sign for the delivery of the merchandise ordered.
• B)Have the accountant order the merchandise so that the amounts will be accurately reflected in the accounting records.
• C)Have the employee who keeps inventory records also make payments for the goods to avoid overpayment of merchandise purchased.
• D)The accountant who records inventory purchases should not have access to the inventory.

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Definitions:

Black Markets

Illicit trade practices where goods or services are exchanged illegally, bypassing governmental regulations or price controls.

Legal Markets

Markets operating within the framework of regulatory laws and norms, where transactions of goods and services occur legally.

Supply and Demand

The fundamental economic model that describes the interaction between the availability of a particular product and the desire for that product, determining its price.

Deadweight Loss

A loss of economic efficiency that occurs when the optimal level of supply and demand is not achieved.