Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate control activities over the invoicing function allow goods to be shipped that are not invoiced. The inadequate control activities could cause an:
A. overstatement of revenues and receivables and an understatement of inventory.
B. understatement of revenues, receivables, and inventory.
C. overstatement of revenues, receivables, and inventory.
D. understatement of revenues and receivables and an overstatement of inventory.
Answer: D
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What will be an ideal response?
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