List three ways in which the gross profit method can be used by a retailer
What will be an ideal response?
The gross profit method can be used to:
1. estimate the value of inventory that was destroyed by fire or natural disaster.
2. test the overall reasonableness of an ending inventory amount.
3. detect large errors.
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Nearly a year ago Mary acquired her first accounting job with an accounting firm after finishing her undergraduate degree in accounting and passing the CPA exam. While counseling with Oakland city paving, Mary quickly noticed the lack of accounting understanding that only by employees but also buy most of the mid-level managers. Her recent education is a big help to the company and she's been approached by several of the managers to share some of her knowledge and understanding with other employees. The CEO has encourage her to start a series of short semi formal sessions that share some of her accounting knowledge with others. Mary thinks A good place to start would be to clarify what the process of_______entails: collecting, analyzing, and reporting financial information
A. Bookkeeping B. Accounting C. Depreciation D. Auditing E. Journalizing
The bank reconciliation uncovered a transposition error in the books. This is an example of a
a. preventive control b. detective control c. corrective control d. none of the above