Accounting Multiple Choice Question – 8 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.

• Invoices are not in numerical sequence.

Select ONE answer:

1. Debts might be included on the receivables ledger that are not collectable
2. Credit notes might not be properly recorded
3. Invoiced sales 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 3

1. Not correct
2. Not correct
3. Correct => Where invoices are not in numerical sequence, invoiced sales might not be properly recorded. Maintaining a numerical sequence for invoices helps ensure that all sales are accounted for and reduces the risk of missing or unrecorded transactions, which is essential for accurate financial records.
4. Not correct

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