Which of the following internal controls most likely would be used to maintain accurate inventory records?

Question

Quizplus · Accepted Answer

Choice "D" is correct. In order to maintain accurate perpetual inventory records, periodic inventory counts should be used to adjust perpetual records. Choice "A" is incorrect. By comparing perpetual inventory records to current costs, the company ensures that the inventory is appropriately valued at the lower of cost or market, but the accuracy of the perpetual inventory is not assured. Choice "B" is incorrect. While a just-in-time inventory system will usually reduce the amount of inventory on hand, it does not necessarily improve the accuracy of inventory records. Choice "C" is incorrect. The matching of requisitions, receiving reports, and purchase orders is a control to ensure that purchases of inventory are properly authorized, but it does not necessarily improve the accuracy of inventory records.

Which of the Following Internal Controls Most Likely Would Be