Which of the Following Is Not a Factor That Tends

question 33

Multiple Choice

Which of the following is not a factor that tends to increase the inherent risk for purchases and payables?

• A) the number of directors.
• B) A high volume of transactions.
• C) issues over costs being capitalised versus expensed
• D) all are factors that tend to increase the inherent risk for purchases and payables.

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Definitions:

Cost Or Market

An accounting principle that values inventory at the lower of its original cost or its current market price to ensure inventory is not overstated on the balance sheet.

Market Value

The present cost at which a service or asset is available for purchase or sale in the market.

FIFO

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or used first.

Realized Holding Gains

Gains recognized from the sale of an investment or asset that were previously unrealized.