Maintaining good controls over merchandise inventory ensures that inventory purchases and sales are properly authorized and accounted for by the accounting system.

Question

Quizplus · Accepted Answer

Proper controls over merchandise inventory help to prevent unauthorized purchases or sales, as well as ensure accurate accounting records. This can include processes for approving purchases, tracking inventory levels, and reconciling sales transactions. Overall, effective inventory controls are important for maintaining the financial health of a business.

Maintaining Good Controls Over Merchandise Inventory Ensures That Inventory Purchases