gravel, paving stones, and store uses the most recent ventory is piled on top of the 44) Which of the following scenarios will not be allowed under IFRS? A) A landscaping and garden retail store keeps piles of river rock, gravel, paving so small decorative rocks in a fenced area on the side of the store. The store uses them inventory costs when calculating cost of goods sold, since new inventory is piled on older inventory. B) A grocery store strictly enforces a shelf rotation policy, so that older inventory the front and sold first. The store uses the oldest inventory costs to calculate cost on C) A farm chemical supplier maintains a large holding tank of chemicals, into which are periodically combined with the older chemicals. The supplier averages the cost o inventory to calculate cost of goods sold. D) All of the above are acceptable under IFRS. oney, so that older inventory is always at S to calculate cost of goods sold. 45) Which of the decisions below is not ordinarily found as part of the revenue cycle A) What credit terms should be offered? B) How often should accounts receivable be subjected to audit? C) How can customer payments be processed to maximize cash flows? D) What are the optimal prices for each product or service? 46) Consider the following revenue cycle scenario: The company has been exposed to custom dissatisfaction and the suggested control procedure to be implemented is to install and use a code scanners. What is the threat? A) The company may be shipping the wrong merchandise. B) The company may be shipping the wrong quantities of merchandise. C) The company may be shipping orders to the wrong address. D) All of the above threats may apply to this scenario. who reports to the 47) In a revenue cycle with proper controls, the involved in any cash handling activities. A) accounts receivable clerk; treasurer B) accounts receivable clerk; controller C) cashier, controller D) cashier; treasurer 48) A serious exposure in the revenue cycle is loss of assets. What is the related threat and applicable control procedure that address this exposure? A) shipping errors, reconciliation of sales order with picking ticket and packing slip B) theft of cash; segregation of duties and minimization of cash handling C) making sales that turn out to be uncollectible; force sales people to make collection calls customers with past due balances D) poor performance; preparation and review of performance reports