The Principles of Internal Control Include

question 175

Multiple Choice

The principles of internal control include:

• A) Maintain minimal records.
• B) Bond all employees.
• C) Separate recordkeeping from custody of assets.
• D) Use only computerized systems.
• E) Require automated sales systems.

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Definitions:

Retail Method

An inventory valuation method used in the retail industry to estimate the ending inventory value, based on the relationship between the cost of goods sold and the retail price.

Inventory Costing

Methods used to value a company’s inventory, such as FIFO, LIFO, or weighted average cost.

Financial Statements

Summaries that detail a corporation's financial state, featuring information like the balance sheet, income statement, and cash flow statement.

Cost To Retail Ratio

A method used in retail to calculate the inventory valuation by dividing the cost of goods sold by the retail price of the goods.