Inventory and Warehousing Cycle: Terms and Procedures, Quizzes of Introduction to Business Management

Download Inventory and Warehousing Cycle: Terms and Procedures and more Quizzes Introduction to Business Management in PDF only on Docsity! TERM 1 The focus of the inventory & warehousing cycle is converting __ into __. DEFINITION 1 raw materials; finished goods TERM 2 _, _, & _ are converted into _, which is converted into _, which leads to _. DEFINITION 2 raw materials, DL, MOH, WIP, Sales TERM 3 When testing for existence, what is the most common substantive procedure we use? DEFINITION 3 physical observation TERM 4 When testing for valuation, our primary substantive procedure is __. We also use __ to look at inventory turnover, __ to look for damaged or slow moving goods, and __ to make sure purchases are in the proper period. DEFINITION 4 price tests; AP; physical observation; cut-off testing TERM 5 Physical inventory observation typically is conducted by ___. DEFINITION 5 the client TERM 6 purpose of physical observation by client DEFINITION 6 to adjust client's perpetual inventory records to actual inventory on hand TERM 7 The idea of price testing is to make sure that the prices are __. DEFINITION 7 appropriate TERM 8 What's the biggest AP we do with the I&W cycle? DEFINITION 8 compare inventory turnover (COGS/avg. inventory) with that of previous years for each individual item TERM 9 The 2 classes of transactions for the Acquisition & Payment cycle are: DEFINITION 9 acquisitions, cash disbursements TERM 10 3 way match DEFINITION 10 invoice, purchase order, receiving report