Which of the following internal controls is typically associated with the maintenance of accurate inventory records?
A)Performing regular comparisons of perpetual records with recent costs of inventory items
B)Using a just-in-time system to keep inventory levels at a minimum
C)Performing a match of the purchase request, receiving report, and purchase order before payment is approved
D)Using physical inventory counts as a basis for adjusting the perpetual records

Question

Which of the following internal controls is typically associated with the maintenance of accurate inventory records?
A)Performing regular comparisons of perpetual records with recent costs of inventory items 
B)Using a just-in-time system to keep inventory levels at a minimum
C)Performing a match of the purchase request, receiving report, and purchase order before payment is approved
D)Using physical inventory counts as a basis for adjusting the perpetual records

Quizplus · Accepted Answer

Using physical inventory counts as a basis for adjusting perpetual records is the best internal control associated with the maintenance of accurate inventory records. This ensures that any discrepancies between the actual physical count and records are identified and corrected promptly. While the other options (A, B, and C) may also be useful internal controls, they are not as directly related to ensuring the accuracy of inventory records.

Which of the Following Internal Controls Is Typically Associated with the Maintenance