Which Document Establishes An Initial Record Of The Receipt Of Inventory?

A purchase order

establishes an initial record of the receipt of the inventory.

Which document establishes an initial record of the receipt of the inventory Petty Cash Voucher B purchase order C vendor’s invoice d receive report?

Which document establishes an initial record of the receipt of inventory vendor’s invoice receiving report petty cash voucher purchase order? The answer is

receiving report

.

Which document authorizes the purchase of inventory from an approved vendor?

Invoice

. The purchase order is a document generated by the buyer and serves the purpose of ordering goods from the supplier.

Which document authorizes the purchase of the inventory from an approved vendor the vendor’s invoice the receiving report the purchase order the Petty Cash Voucher?

The purchase order

authorizes the purchase of the inventory from an approved vendor. The form or electronic transmission used by the receiving personnel to indicate that materials have been received and inspected. Inventory method in which the unit sold is identified with a specific purchase.

Which of the following is a security measures to safeguard inventory?

Some examples of security measures to safeguard inventory include what? –

storing inventory in areas that are restricted to only authorized employees

. -locking high-priced inventory in cabinets. -using two-way mirrors, cameras, security tags, and guards.

Which of the following is not considered cash by an accountant?

Items like

postdated checks, certificates of deposit, IOUs, stamps, and travel advances

are not classified as cash. These would customarily be classified in accounts such as receivables, short-term investments, supplies, or prepaid expenses.

What are the two primary objectives of internal control over inventory?

Two primary objectives of control over inventory are:

-Safeguarding the inventory from damage or theft. -Reporting inventory in the financial statements.

authorizes the purchase of the inventory from an approved vendor.

What documents are used in inventory control?

• Stock Requisition (SR)
• Pick and Issue (PI)
• Issue Confirmation (CI)
• Over the Counter (OC)
• Stock Return (SN)
• Inventory Adjustment (IA)
• Physical Inventory Purchase Input (IP)
• Stock Transfer Issue (TI)

What is inventory classified as on the balance sheet?

Inventory is the raw materials used to produce goods as well as the goods that are available for sale. It is classified as

a current asset

on a company’s balance sheet.

Which of the following is an element of internal control?

the five elements of internal control are the

control environment, risk assessment, control procedures, monitoring, and information and communication

.

When would you use a perpetual inventory system?

A perpetual inventory system gives

an ecommerce business an accurate view of stock levels at any time

without the manual process required for a periodic inventory system. The automation that a perpetual inventory system provides frees up time and capital.

When inventory is assumed to be sold in the order in which it was purchased what cost flow is used?

Reporting inventory in the financial statements. Under the first-in, first-out inventory cost flow method, the first units purchased are assumed to be sold and the ending inventory is made up of the most recent purchases;costs are included in

the cost of merchandise sold

in the order in which they were purchased.

What entry is required in the company’s accounts to record outstanding checks?

No entry is made to a

company’s general ledger for outstanding checks when preparing a bank reconciliation. The reason is outstanding checks are an adjustment to the bank balance. Outstanding checks are not an adjustment to the company’s Cash account in its general ledger.

How do you protect inventory?

1. Lock and monitor inventory. …
2. Organize and label inventory. …
3. Leave a paper trail. …
4. Conduct cycle counts on a regular basis. …
5. Spot check the inventory list. …
6. Review your bill of materials. …
7. Look for obsolete inventory. …
8. Minimize movement at year-end.

What are examples of safeguarding inventory?

• Security Technology. …
• Security Personnel. …
• Inventory Audits. …
• Just-in-Time Inventory.

Which of the following is a security measures to safeguard inventory quizlet?

locking high-priced inventory in cabinets

. using two-way mirrors, cameras, security tags, and guards. All of these choices are correct. With a perpetual inventory system, when should a physical count of inventory be taken?