Maple Company Has an Increase in Purchases from Specific Vendors

question 35

Multiple Choice

Maple Company has an increase in purchases from specific vendors and an increase in raw materials inventory for the items purchased from these vendors. Sales for the company have not increased and are not forecast to increase. From this information an auditor might suspect

• A)an increase in obsolete raw material inventory.
• B)theft of raw material inventory.
• C)kickbacks from vendors.
• D)poor security over raw material inventory.

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Definitions:

High IQs

Refers to individuals who score significantly above the average range in intelligence quotient assessments.

Low IQs

A term used to describe individuals who score below average on standardized intelligence tests.

Gardner's Theory

A psychological proposition suggesting that humans have multiple distinct intelligences, each a significant potential for learning and problem-solving.

Spearman's G-Factor Theory

The theory proposed by Charles Spearman that suggests human intelligence is largely composed of a General Intelligence factor, known as g-factor, which underlies specific mental abilities.