The company was enormously successful in establishing colonies in Asia and that, combined with the tulip mania which was a bizarre speculative bubble in Northern Europe fueled by a runaway tulip bulb market, led the East India Company to become the most valuable company in the world with a total worth of 78 million Dutch Guilders.
Chapter 7--Inventories Student: ___________________________________________________________________________ 1. One of the two internal control procedures over inventory is to properly report inventory on the financial statements. True False 2. A purchase order establishes an initial record of the receipt of the inventory. True False 3. A perpetual inventory system is an effective means of control over inventory. True False 4. A subsidiary inventory ledger can be an aid in maintaining inventory levels at their proper levels.
Under the perpetual inventory system, an entity continually updates its inventory records to account for additions to and subtractions from inventory for such activities as: 1  Received inventory items. 2  Goods sold from stock.3  Items moved from one location to another.erpetual Inventory System Overview. Under the perpetual inventory system, an entity continually updates its inventory records to account for additions to and subtractions from inventory for such activities as: 1  Received inventory items. 2  Goods sold from stock. 3  Items moved from one location to another.