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

Question

Quizplus · Accepted Answer

The controls described in the question relate to inventory management, specifically to ensure that physical counts are accurately reflected in the financial records. This process is known as inventory compilation, and the controls that ensure its accuracy are known as inventory compilation controls. Options A, C, and D do not accurately describe this process.

Controls Which Provide a Means of Ensuring That the Physical