Day: February 15, 2026

A deficiency has been identified in the following area of the company’s purchase system.

For the deficiency below, select the risk which is MOST LIKELY to arise.

-Records of goods received are NOT kept.

Select ONE answer:

1. Goods may be misappropriated for private use
2. Goods and services might not be obtained on the most advantageous terms
3. Invoices may not be recorded resulting in non-payment
4. The company may not take advantage of the full period of credit extended

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 1

1. Correct – The risk of goods and services not being obtained on the most advantageous terms would be more likely to arise at the ordering stage.
2. Not correct
3. Not correct
4. Not correct

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