Explanation 3. Purchases records are verified if perpetual inventory records show lower count then physical valuation because generally, it occurred due to non-recording of purchases and examined during the evaluation of records of inventory. Therefore, this isthe correct option. 1. Sales records are not responsible for variation in physical count and documents because it is related to sales and recorded by the sales department. Therefore, this is not the correct option...

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Financial accounting is one of the branches of accounting in which the transactions arising in the business over a particular period are recorded.

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Chapter 21, Problem 14.2MCQ

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Identify the perpetual records of inventory.

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Ch. 21 - Prob. 1RQ Ch. 21 - Prob. 2RQ Ch. 21 - Prob. 3RQ Ch. 21 - Prob. 4RQ Ch. 21 - Prob. 5RQ Ch. 21 - Prob. 6RQ Ch. 21 - Prob. 7RQ Ch. 21 - Prob. 8RQ Ch. 21 - Prob. 9RQ Ch. 21 - Prob. 10RQ

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