Which of the following do NOT indirect information?
A.
Information about the propriety of cutoff
B.
Reports that show orders that were rejected for credit limitations.
C.
Reports that provide information about any unusual deviations and individual product margins.
D.
The lack of any significant differences between perpetual levels and actual levels of goods.
Explanation:
Information about the propriety of cutoff is a kind of direct information.
Answer C is incorrect. Reports that provide information about any unusual deviations and
individual product margins (whereby, the price of an item sold is compared to its standard cost)
provide indirect information that controls over billing and pricing are operating.
Answer B is incorrect. Reports that show orders that were rejected for credit limitations provide
indirect information that credit checking aspects of the system are working as intended.
Answer D is incorrect. The lack of any significant differences between perpetual levels and actual
levels provides indirect information that its billing controls are operating.