The Internal Controls That Determine the Accuracy of the Perpetual

question 64

Multiple Choice

The internal controls that determine the accuracy of the perpetual inventory file were tested in the revenue process and the purchase and acquisition process because

• A)these processes involve movement of inventory in and out of the perpetual inventory account
• B)these processes involve reconciliation of inventory in the perpetual inventory account
• C)these processes involve verification of inventory in the perpetual inventory account
• D)these processes involve observation of inventory in the perpetual inventory account

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Definitions:

Exchange Rate

The measurement of one currency's value against another.

Appreciated

An increase in the value of an asset over time.

Domestic Investment

The total spending on capital within a country, including investments in machinery, infrastructure, and technology, by the private and public sectors.

Foreign Assets

Financial assets held in a country other than where the investor is based, including stocks, bonds, and real estate.