Accounting Multiple Choice Question – 7 February 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. Purchase invoices are NOT matched with goods received notes
2. The buying department does not always use authorised suppliers
3. Alex Manufacturing Ltd does not always take advantage of prompt payment discounts
4. The payables ledger is reconciled to the payable’s 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 1

1. Correct – Where goods received notes are not matched to purchase invoices, goods may have been received and not invoiced or where invoices not matched to goods received notes invoices could be posted without having received goods leading to a misstatement of liabilities. Options 2 and 3 are control deficiencies that do not result directly in the misstatement of liabilities.
2. Not correct
3. Not correct
4. Not correct

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