Alpha Company Uses Its Sales Invoices for Posting Perpetual Inventory

Multiple Choice

Alpha Company uses its sales invoices for posting perpetual inventory records. Inadequate control activities over the invoicing function allow goods to be invoiced that are not shipped. The inadequate control activities could cause an:

A) understatement of revenues, receivables, and inventory.
B) overstatement of revenues and receivables and an understatement of inventory.
C) understatement of revenues and receivables and an overstatement of inventory.
D) overstatement of revenues, receivables, and inventory.