A Customer Intended to Order 100 Units of Product Z96014

question 13

Multiple Choice

A customer intended to order 100 units of product Z96014, but incorrectly ordered 100 units of a nonexistent product Z96015. Which of the following controls most likely would detect this error?

• A)Existence (validity)test.
• B)Limit test.
• C)Field test.
• D)Sign test.

---

Definitions:

Free Cash Flow

A financial metric that represents the amount of cash a company generates after accounting for capital expenditures used to maintain or expand its asset base.

Corporate Governance

The system of rules, practices, and processes by which a company is directed and controlled, focusing on balancing the interests of stakeholders.

CEO's Ability

Refers to the skills, experience, and leadership qualities that a Chief Executive Officer possesses in managing and guiding a company.

Agency Costs

Expenses that arise from conflicts of interest between management of a company and its shareholders, including costs related to monitoring and aligning interests.