Answered: Identify the incorrect statement below;…

Identify the incorrect statement below; Group of answer choices “Too much inventory can lead to increased risk of pilferage and obsolescence”. “Non-current assets

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 7CYBK

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Identify the incorrect statement below;

Group of answer choices

“Too much inventory can lead to increased risk of pilferage and obsolescence”.

“Non-current assets are a part of working capital”.

“If a firm has too big a cash balance, it should consider repaying some or all of it to its shareholders”.

“Too high a figure of receivables might indicate poor credit control”.

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