Alpha Company Uses Its Sales Invoices for Posting Perpetual Inventory

question 3

Multiple Choice

Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate control procedures over the invoicing function allow goods to be shipped that are not invoiced. The inadequate control procedures could cause an:

• A) understatement of revenues, receivables and inventory.
• B) overstatement of revenues and receivables and an understatement of inventory.
• C) understatement of revenues and receivables and an overstatement of inventory.
• D) overstatement of revenues, receivables and inventory.

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Definitions:

Transformational Leadership

A leadership approach that creates significant change in the life of people and organizations by inspiring followers to transcend their self-interests for the good of the group or organization.

Turbulence

Refers to chaotic or unpredictable movements within a fluid, often experienced as instability in atmospheric conditions or in fluid dynamics.

Ethics Competency

The ability to recognize ethical issues, make informed ethical decisions, and uphold moral principles in professional settings.

Intellectual Stimulation

The degree to which a job, task, or environment encourages, challenges, and facilitates critical thinking and problem-solving.