Sandra Is Analyzing the Cash Cycle of Her Audit Client

question 3

Multiple Choice

Sandra is analyzing the cash cycle of her audit client.Which of the following could indicate a liquidity problem?

• A)obsolete inventory
• B)high level of inventory
• C)inventory on consignment
• D)backordered inventory

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Definitions:

Performance Targets

Specific goals set for individuals or teams to measure and evaluate their efficiency and effectiveness.

Intrinsic Motivation

The drive to do something because it is inherently interesting or enjoyable, without needing external reward or recognition.

Extrinsic Motivation

Motivation driven by external rewards such as money, fame, grades, or praise, in contrast to intrinsic motivation, which is driven by internal personal satisfaction.

Call Centre

A centralized office used for the purpose of receiving or transmitting a large volume of requests by telephone, often related to customer service.