Chapter 16 - Chapter 16 Take Home Quiz 1. a. b. c. d. The...

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Chapter 16 Take Home Quiz 1. The understatement of sales and accounts receivable is best uncovered by: a. confirming receivables. b. reviewing the aged trial balance. c. test of transactions for shipments made but not recorded. d. reconciling the accounts receivable general ledger account with the schedule of accounts receivable. 2. You are reviewing sales to discover cutoff problems. If the client’s policy is to record sales when title to the merchandise passes to the buyer, then the books and records would contain errors if the December 31 entries were for sales recorded: a. before the merchandise was shipped. b. at the time the merchandise was shipped. c. several days subsequent to shipment. d. at a time after the point at which title passed. 3. It is easy to test for a cash receipts cutoff error by: a. reconciling the bank statement. b. performing a four-column proof-of-cash. c. observing the counting of cash at the balance sheet date. d. tracing recorded cash receipts to bank deposits on the bank statement of a different period. 4. The most reliable evidence from confirmations is obtained when they are sent: a. as close to the balance sheet date as possible. b.
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This note was uploaded on 03/06/2011 for the course ECON 435 taught by Professor Galven during the Spring '11 term at Ill. Chicago.

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Chapter 16 - Chapter 16 Take Home Quiz 1. a. b. c. d. The...

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