Brainmass downloads to questions

Brainmass downloads to questions - 1. 2. 3. 4. c. 5. b.

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  1. Which of the following accounts in a merchandising company is affected by both the revenue  cycle and another cycle? a. sales b. sales returns and allowances c. inventory d. accounts receivable e. accounts payable d. accounts receivable. This belongs to the revenue cycle and the sales cycle.    2. The audit objective, “The accounts receivable balance represents gross claims on customers and  agrees with the sum of the accounts receivable subsidiary ledger” is derived from the assertion of: a. existence or occurrence. b. completeness. c. rights and obligations. d. valuation or allocation. e. presentation or disclosure. b. completeness.  This statement confirms that all relevant transactions have been recorded.    3. The bonding of employees will normally be expected to: a. “weed out” dishonest employees already hired. b. eliminate the need for separation of duties in the cash receipts area. c. guarantee that all employee fraud will be prevented. d. provide reasonable assurance that all employees will perform their jobs with the utmost  integrity. e. serve as a deterrent to dishonesty. e. serve as a deterrent to dishonesty. This has been derived from social theories.   4. A company policy states that annual vacations are mandatory for all employees.  This policy  is  most important for employees who: a. are not bonded. b. handle cash receipts. c. maintain the detailed accounting records. d. have access to the general ledger. e. serve as inventory clerks. c. maintain the detailed accounting records. They ensure that every employee has his vacation.  5. In a credit-merchandising environment, which of the following documents usually initiates the  activity in the sales cycle? a. shipping document b. customer order c. material requisition d. sales invoice e. sales order b. customer order: This is the first action taken. 
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6. Controls designed to reduce the risk of omissions, duplications, incorrect pricing, and other types  of errors in the billing process include all of the following except : a. comparison of control totals for shipping documents with corresponding totals for sales  invoices. b. computer matching of sales invoice information with purchase order information. c. computer matching of sales invoice information with sales order and shipping information. d. computer-programmed checks on the mathematical accuracy of sales invoices. e. computer matching of sales prices with an authorized price list and sales order prices in  preparing the sales invoices. b.
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This note was uploaded on 09/18/2010 for the course ACC 492 taught by Professor Mr.p during the Spring '10 term at Acadia.

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Brainmass downloads to questions - 1. 2. 3. 4. c. 5. b.

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