A debit entry to an account will
1. Always decrease the account balance.
2. Always increase the account balance.
3. Increase the balance of a revenue account.
4. Increase the balance of an asset account.
An inventory turnover analysis is useful to the auditor becauseit may detect.
a. Inadequacies in inventory pricing.
b. Methods of avoiding cyclical holding costs.
c. The optimum automatic reorder points.
d. The existence of obsolete merchandise.
