Which of the Following Deficiency Exists If a Necessary Control

question 69

Multiple Choice

Which of the following deficiency exists if a necessary control is missing or not properly formulated?

• A) control
• B) significant
• C) design
• D) operating

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Definitions:

Inventory Value

Inventory value is the total cost or market value of all the goods and materials held by a company intended for sale.

Pretax Income

The amount of income earned by a business before paying taxes, also known as earnings before tax (EBT).

Overstated

When figures or amounts are reported higher than they actually are, potentially misrepresenting the financial condition of a business.

Inventory Accounting Methods

Different approaches to valuing and managing inventory, including FIFO (First In, First Out), LIFO (Last In, First Out), and weighted average cost.