Day: February 6, 2026

Which ONE of the following deficiencies identified in the purchase system of Alex Manufacturing Ltd could result in a misstatement of liabilities?

Select ONE answer:

1. The buying department does not always use authorised suppliers
2. Alex Manufacturing Ltd does not always take advantage of prompt payment discounts.
3. Purchase invoices are matched with goods received notes
4. The payables ledger is not reconciled to the payables ledger control account

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

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

The answer is 4

1. Not correct
2. Not correct
3. Not correct
4. Correct – Control account reconciliations help to identify posting errors. Options 1 and 2 are control deficiencies that do not result directly in the misstatement of liabilities.

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