One of the Two Internal Control Procedures Over Inventory Is

question 186

True/False

One of the two internal control procedures over inventory is to properly report inventory on the financial statements.

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Definitions:

Supplies Used

The cost of supplies consumed during a specific period, often recorded as an expense on the income statement.

Expense

Expense is the cost of operations that a company incurs to generate revenue, encompassing everything from rent and salaries to utilities and materials.

Periodic Inventory Method

An accounting method which involves physically counting the inventory at specific intervals to determine the cost of goods sold and the ending inventory balance.