Which of the Following Is an Example of the Type

question 46

Multiple Choice

Which of the following is an example of the type of analytics that an auditor would use for inventory?

• A)Number of day's sales in receivables compared to industry averages.
• B)Inventory turnover for the previous five years.
• C)Number of obsolete units this period compared to last.
• D)Salaries of marketing personnel as a percent of total inventory.

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Definitions:

Bad Debt

Financial losses attributed to customers' failure to pay for goods or services provided on credit.

Accounts Receivable Tracking

The process of monitoring and managing the amounts owed to a business by its customers for goods or services provided on credit.

Aging Report

A summary of a company’s accounts receivables that are outstanding, categorized by the length of time an invoice has been unpaid.

On Time

The occurrence of an event at the scheduled or expected time without delay.