Which of the Following Is Least Likely to Represent a Material

question 7

Multiple Choice

Which of the following is least likely to represent a material weakness in internal control for Flynt Corporation?

• A)Flynt Corporation's computer systems were not working properly for two days; consequently, employees needed to do all reconciliations manually.
• B)Flynt Corporation's CFO was arrested last year for embezzling money from the entity.
• C)For the current year, the auditor found a material misstatement in Flynt's sales recognition that was undetected by the internal controls.
• D)Flynt's audit committee is deemed to be ineffective.

Determine appropriate activity bases for specific costs.

Differentiate between fixed, variable, and mixed costs in practical scenarios.

Understand and apply the concept of the relevant range in management decisions.

Calculate and distinguish between different types of costs using methods like the high-low method.

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Definitions:

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.

Average Collection Period

The average number of days it takes for a company to collect payments from its credit sales, a measure of the effectiveness of its credit and collection policies.

Year-End Balance

The final amount of money in an account at the conclusion of a financial year, after all transactions have been accounted for.

Forecasted Net Income

An estimate of a company's profit for a future period, calculated by projecting revenues and subtracting anticipated expenses.