Which of the Following Is a Weakness in Internal Control

question 3

Multiple Choice

Which of the following is a weakness in internal control that allows a reasonable possibility that a significant (but less than material) misstatement may occur and not be detected?

• A)Control deficiency.
• B)Material weakness.
• C)Reportable material item.
• D)Significant deficiency.

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Definitions:

Selling Expenses

Expenses that are incurred directly in the selling of merchandise.

Periodic Inventory

A system in which the inventory is physically counted at certain periods and the cost of goods sold is calculated thereafter.

Computerized Accounting Systems

Digital systems that manage, record, and process financial transactions using software, thereby improving accuracy and efficiency.

FOB Destination

A term specifying that the seller is responsible for the goods and the cost of shipping until they are received by the buyer at the destination.