When Recording a Sale of Inventory on Credit,the Office Clerk

question 14

Multiple Choice

When recording a sale of inventory on credit,the office clerk records the debit entry to accounts payable instead of to accounts receivable.This error will result in:

• A) an understatement of sales for the period.
• B) no effect on profit for the period.
• C) an overstatement of liabilities at the end of the period.
• D) an understatement of equity at the end of the period.

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Definitions:

Task Analysis

The process of breaking down a task into its individual components to better understand, teach, or improve it, different from Cognitive Task Analysis as it may focus more broadly on physical and procedural tasks.

Organizational Analysis

The process of reviewing the development, work environment, personnel, and operation of a business or another type of association.

Strategic Direction

Guidance for an organization on its long-term goals and the strategies to achieve them, often set by top management.

Job Performance

The level of effectiveness and efficiency with which an employee accomplishes their work tasks and responsibilities.