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ch7 - ch7 Student 1 To be recognized revenues must also be...

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ch7 Student: ___________________________________________________________________________ 1. To be recognized, revenues must also be realized or realizable and A. Foreseeable B. Collected C. Earned D. Shipped 2. The SEC requires all of the following for revenue to be recognized except 3. "Bill and Hold" refers to an arrangement where A. Sales are recorded but are not shipped. B. Sales are shipped but are not recorded. C. Sales are billed but not collected. D. Inventory is held but not billed. 4. Custody of inventory is transferred to the shipping area upon authorization of: 5. The document that generates recording of a sale is the 6. The sum of customers' unpaid balances that is compared to the general ledger balance comes from A. A total of sales invoices. B. A total of shipping orders. C. The sales journal. D. The accounts receivable trial balance. 7. The file that contains sales transactions that were initiated in the system but are not yet completed is the:
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8. The assertion that auditors will probably emphasize in the revenue and collection cycle is: 9. A small business owner can best offset the lack of separation of duties by 10. Accountants should be under orders to record sales and accounts receivable when A. The customer's order is received. B. All supporting documentation of shipping is in order. C. The item has been paid for. D. The terms are agreed upon. 11. Which of the following is an example of a control activity that satisfies the accuracy control objective for sales invoices?
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