Hall's Office Supplies Is a Small Store in a Rural

question 24

Multiple Choice

Hall's Office Supplies is a small store in a rural area of the United States; Ian Hall is the owner. The store also employs three purchasing agents and an accountant. While the purchasing agents handle day-to-day inventory purchases, Ian makes all large purchases (equipment, furniture and computers, for example) himself. Each purchasing agent is responsible for purchasing a specific group of inventory items; for example, one purchasing agent handles all purchases of computer-related supplies (mouse pads, compact discs) . Each purchasing agent uses his/her best judgment when deciding how much and how often to order inventory items. When inventory and other items arrive at the store, the relevant purchasing agent checks it in and puts it in the stockroom. Vendors send invoices directly to the accountant, who pays them within thirty days and reconciles the bank statement at least monthly. Ian works as a salesperson Monday through Friday from 8 a.m. to 5 p.m.;
he is assisted by two half-time sales staff. One staff person works from 8 a.m. to 12 noon, while the other works from 1 p.m. to 5 p.m. The part-time staff is in charge of keeping the shelves stocked. Hall's Office Supplies maintains a manual accounting information system, and retains copies of all documents for one year.
-Which of the following internal controls would most effectively prevent inventory theft at Hall's Office Supplies?

• A) Bonding the part-time sales staff.
• B) Installing video surveillance equipment in the stockroom.
• C) Counting all inventory on hand twice a day.
• D) Requiring sales staff to put an inventory tag on all products over $100.

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Definitions:

Circadian Rhythm

The physical, mental, and behavioral changes that follow a 24-hour cycle, primarily responding to light and darkness in an organism's environment.

Hypnagogic Sensations

Experiences occurring at the onset of sleep, characterized by vivid and surreal hallucinations.

REM Rebound

The phenomenon of increased REM (Rapid Eye Movement) sleep, which occurs after periods of REM sleep deprivation, often resulting in more vivid dreams.

Depression Vulnerable

A state or condition where an individual is more susceptible to developing depressive disorders due to genetic, environmental, or psychological factors.