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List the Internal Control Objectives Illustrated by the Following

question 149

Essay

List the internal control objectives illustrated by the following:
(a)keeping the inventory storeroom locked
(b)counting the inventory at the end of the accounting period and comparing it with the inventory ledger clerk's records
(c)using subsidiary ledgers and a perpetual inventory system


Definitions:

Consumer Surplus

The variance between the sum consumers are willing to shell out for a good or service and the sum they actually shell out.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a balance in the market.

Producer Surplus

The discrepancy between the price at which producers are prepared to offer a good or service and the price they actually obtain.

Demand Shifts

Refers to the change in the quantity demanded of a good or service at any given price, caused by factors other than the price of the good itself.

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