Which of the Following Is Not an Example of Safeguarding

question 36

Multiple Choice

Which of the following is not an example of safeguarding inventory?

• A) storing inventory in restricted areas
• B) physical devices such as two-way mirrors, cameras, and alarms
• C) matching receiving documents, purchase orders, and vendor's invoice
• D) returning inventory that is defective or broken

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Definitions:

Accounts Receivable Period

The average amount of time it takes for a company to receive payments owed by its customers for goods or services provided.

Inventory

The raw materials, work-in-progress products, and finished goods that a company holds for the purpose of sale in the future.

Cost of Goods Sold

Expenses directly linked to the creation of a company's sold products.

Sales

Sales refer to the transactions where goods or services are exchanged for money, representing the primary source of revenue for most businesses.