Controls which provide a means of ensuring that the physical counts are properly summarized, priced at the same amount as the unit records, correctly extended and totaled, and included in the general ledger at the proper amount are known as
A) standard cost controls.
B) pricing internal controls.
C) compilation internal controls.
D) count quantity internal controls.

Question

Quizplus · Accepted Answer

The controls described in the question refer to the compilation of physical inventory counts into financial statements, which is a part of the accounting cycle. Therefore, the appropriate term is "compilation internal controls." The other choices, such as standard cost controls and pricing internal controls, are related to different parts of the organization and are not directly relevant to inventory compilation. "Count quantity internal controls" is also not an appropriate term because it does not cover all the necessary aspects of inventory compilation.

Controls Which Provide a Means of Ensuring That the Physical