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SSC Financial and Cost Accounting P-1 QUESTION #6076
Question 1

Iga suspects that some credit notes received from suppliers have not been recorded. Which of the following actions should she take to verify this?

  1. Compare purchases ledger balances against supplier statements
  2. Extract a trial balance of individual purchases ledger accounts
  3. Prepare a purchases ledger control account
  • 1 and 2
  • 1 only✔️
  • 2 and 3 only
  • 3 only
Correct Answer Explanation

Comparing the business's records with the supplier's statement is the most effective way to find missing credit notes, as the supplier will have recorded the credit note even if the business forgot to. A trial balance or control account only checks internal consistency.