Which of These Occurrences Could Account for a Difference Between

question 62

Multiple Choice

Which of these occurrences could account for a difference between the total value of inventory in the accounting records and the total value of inventory as per the stocktake?

• A)Cost of sales transactions not recorded in the accounting records.
• B)Inventory stolen from the storeroom.
• C)Some inventory items not counted in the stocktake.
• D)All of the above.

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Definitions:

Net Present Value

The gap between the current value of incoming and outgoing cash over a given period.

Lockbox System

A service offered by banks to companies for the receipt of payment from customers, involving the collection of customers' payment checks through a special post office box.

Bank

A financial institution that accepts deposits, offers loans, and provides other financial services.

Average Daily Receipts

The average amount of cash flow received by a business per day over a defined period of time.