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:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Trading Portfolio

A collection of financial assets such as stocks, bonds, commodities, and currencies that are held primarily for the purpose of selling them in the near term with the objective of profit.

Fair Value Method

An accounting approach for valuing and reporting assets and liabilities on the basis of estimates of their current fair market prices.