Which of the Following Are Causes of Inventory Record Errors

question 22

Multiple Choice

Which of the following are causes of inventory record errors?
I. Unauthorized withdrawals of material.
II. Unsecured stockroom.
III. Audit capability.

• A) all the above
• B) I and II only
• C) I and III only
• D) II and III only
• E) I only.

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Definitions:

Classified Balance Sheet

A financial statement that segregates assets and liabilities into current and long-term categories, enhancing analysis of the company's financial position.

Intangible Assets

Assets that cannot be physically touched but have value such as intellectual property, patents, and trademarks.

Sub-classifications

Specific categories within a broader class that help in organizing data, information, or resources more precisely.

Current Assets

Assets expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.