Accounting Multiple Choice Question – 7 January 2026

The external auditor at Alex Ltd has identified the following deficiency within that organisation’s sales system.

For the deficiency, select the MOST likely consequence which might arise as a result of that deficiency.

• Overdue accounts are not followed up.

Select ONE answer:

1. Invoiced sales might not be properly recorded
2. Debts might be included on the receivables ledger that are not collectable
3. Credit notes might not be properly recorded
4. Invoices may be raised in error

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. If overdue accounts are not followed up, debts might be included in the receivables ledger that are not collectable. This is because failing to follow up on overdue accounts increases the risk that uncollectible or bad debts remain on the books, which can lead to inaccurate financial reporting and potential losses for the business.
3. Not correct
4. Not correct

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