Beta Pty Ltd Posts to Its Perpetual Inventory Records Directly

question 21

Multiple Choice

Beta Pty Ltd posts to its perpetual inventory records directly from its sales invoices.Inadequate control procedures over the invoicing function allow goods to be invoiced that are not shipped.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:

Extranets

Networks that link business partners over the Internet by providing them access to certain areas of each other’s corporate intranets.

VPN

A Virtual Private Network (VPN) is a secure connection method over the internet that provides privacy and anonymity by masking IP addresses.

Internet Security

Measures and protocols to protect computers and networks from unauthorized access, attacks, or data theft when connected to the Internet.

SCM

Stands for Supply Chain Management, which is the oversight of materials, information, and finances as they move from supplier to manufacturer to wholesaler to retailer to consumer.