Question

TRUE OR FALSE

1.One application of internal control when taking a physical count of inventory is the use of pre-numbered inventory tickets.

2. Purchase allowances refer to merchandise a buyer acquires but then returns to the seller.

3. Gross profit is also called gross margin.

4. A retailer buys products from manufacturers and sells them to wholesalers

Answer 1

Answers:

1. True

Yes,One application of internal control when taking a physical count of inventory is the use of pre-numbered inventory tickets.

2.False

The given statement is false and the correct statement is a purchase allowance is a reduction in the buyer's cost of merchandise that it had purchased.

3.True

Gross profit is also called gross margin.

4.False

The given statement is false and the correct statement is a wholesaler buys products from manufacturer and sells them to retailers.

Thanks...