A Control Weakness for Revenues and Receivables Processing That Could

question 73

Multiple Choice

A control weakness for revenues and receivables processing that could lead to theft of inventory is ______.

• A)when accounting staff can update the accounts receivable files
• B)when the stockkeeper authorizes release of the inventory
• C)when no period confirmation of the balance owing from the customer is made.
• D)when shipping personnel have the power to alter the quantities shipped on the shipping documents

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Definitions:

Total Overhead Cost

The aggregate of all overhead costs associated with the operation of a business, excluding direct labor and direct materials.

Planning Budget

A budget that outlines the expected revenues, expenditures, and resources over a specific period, used as a guide for financial planning.

Refurbishing Materials

Materials used in the process of repairing and restoring products to a like-new condition.

Shipping Container

Large, standard-sized metal box used for transporting goods over long distances, typically by sea or land.