When Taking a Physical Count of Inventory, the Use of Prenumbered

question 185

True/False

When taking a physical count of inventory, the use of prenumbered inventory tickets is an application of internal control.

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Definitions:

Return on Assets Ratio

A financial metric used to evaluate a company's profitability relative to its total assets.

Earnings Per Share

Earnings per share (EPS) is a financial ratio that indicates the portion of a company's profit allocated to each outstanding share of common stock.

Treasury Shares

Treasury shares are previously issued shares that have been bought back by the issuing company, reducing the amount of outstanding stock on the open market.

Market Price

The current price at which an asset or service can be bought or sold in an open and competitive market.