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:

Six-Figure Accuracy

A level of precision in calculations or measurements that results in a six-digit number.

Powers

The product of multiplying a number by itself a specified number of times.

Powers

In a mathematical context, it refers to the operation of raising a number to a certain exponent. In a general context, it can refer to the capabilities or authorities held by an individual or entity.

Six-Figure Accuracy

Describes a level of precision in calculations or measurements that extends to at least six digits.