The risks that may affect the revenue and cash collection processes include all of the following, except:
A)Transactions may have been recorded in the wrong customer account.
B)Transactions may be recorded in the wrong amount.
C)Invalid transactions may have been omitted from the records.
D)Transactions may not have been accumulated or transferred to the accounting records correctly.

Question

Quizplus · Accepted Answer

Invalid transactions that have been omitted from records may affect the accuracy of financial statements, but they do not directly impact the revenue and cash collection processes. The other options all pertain directly to these processes and can lead to errors or misstatements in financial reporting.

The Risks That May Affect the Revenue and Cash Collection