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Chapter 18 - Chapter 18 Multiple-Choice Questions 1 easy d...

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Chapter 18 Multiple-Choice Questions 1. The classes of transactions in the acquisition and payment cycle include acquisition of: easy a. goods. d b. goods and services. c. goods and services, and cash disbursements. d. goods and services, cash disbursements, and purchase returns and allowances. 2. The overall objective in the audit of the acquisition and payment cycle is: easy a. to ensure the reliability of the affected accounts. c b. to ensure the accuracy of the affected accounts. c. to evaluate whether the affected accounts are fairly stated in accordance with GAAP. d. to evaluate whether fraudulent payments were made. 3. The audit of the acquisition and payment cycle often takes ____ time to audit than other cycles. easy a. less c b. about the same c. more d. no less 4. What typically initiates the acquisitions and payment cycle? easy a 5. What typically ends the acquisitions and payment cycle? easy b 6. easy The receipt of goods and services in the normal course of business represents the date clients normally recognize: b 7. Which of the following accounts is not included in the acquisitions class of transactions? easy a. Inventory. c b. Prepaid expenses. c. Purchase discounts. d. Accounts payable. Arens/Elder/Beasley
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8. A document indicating a reduction in the amount owed to a vendor because of returned goods is: easy a 9. easy A document used by organizations to establish a formal means of recording and controlling acquisitions which usually contains a package of documents about the acquisition is the: a 10. The accounts payable account includes obligations for the acquisition of: easy d 11. easy Comparing expenses to prior years is an effective analytical procedure for accounts payable because expenses from year to year are: d a. erratic. b. variable. c. dynamic. d. relatively stable.
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