Professional Documents
Culture Documents
1 INCORRECT
All the above D) Feedback: Incorrect. To be recognized revenues must be earned and realized or realizable
2 INCORRECT
Recording a sale while keeping the goods in your own warehouse is called: A) B) C) Invoice and keep. Bill and hold. Recognition.
3 INCORRECT
Which of the accounts would not be included in the Revenue and Collection cycle? A) B) C) Cash in bank. Accounts Receivable. Raw Materials.
Bad Debt Expense. D) Feedback: Incorrect. Accounts Receivable is included in the cycle
4 INCORRECT
Custody is transferred from the warehouse to the shipping department upon authorization of the A) B) C) Shipping order. Customer order. Purchase order.
Invoice. D) Feedback: Incorrect. This initiates the process, but may not indicate
approval.
5 INCORRECT
A form signed by the carrier to verify goods are shipped is called the A) B) C) Shipping order. Receiving report. Carrier form.
Bill of lading. D) Feedback: Incorrect. This is prepared by the recipients after goods are shipped and received.
6 CORRECT
A fraud technique whereby someone steals a cash receipt and uses a later cash receipt from another customer to cover the theft of the first receipt is called A) B) C) Kiting Lapping Bill and hold
7 INCORRECT
Approval of credit sales by the credit department supports the assertion of A) B) C) Existence or occurrence. Completeness. Valuation or allocation.
Rights and obligations. D) Feedback: Incorrect. This helps ensure the receivable will be collectible.
8 INCORRECT
Confirming accounts receivable primarily supports the assertion of A) B) C) Existence. Completeness. Valuation or allocation.
Rights and obligations. D) Feedback: Incorrect. If a customer owes a debt that is not recorded, it
9 INCORRECT
The most reliable evidence comes from A) B) C) A positive confirmation. A negative confirmation. A blank confirmation.
Examining a sales invoice. D) Feedback: Incorrect. A blank confirmation is the most reliable because the customer has to look up the amount to fill in the blank.
10 INCORRECT
Which of the following responses to a confirmation request at December 31 is most likely to indicate a misstatement? A) B) C) This amount was paid on December 30th. We are unable to confirm this account. We returned these items in November.
We received these goods on January 4th. D) Feedback: Incorrect. The client probably doesn't keep records in such a manner as to know the outstanding b