ACCT 241

ACCT 241 - To be recognized, revenues must be a. realized...

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Unformatted text preview: To be recognized, revenues must be a. realized b. realizable c. earned d. all of the above d. all of the above Recording a sale while keeping the goods in your own warehouse is called: a. invoice and keep b. bill and hold c. recognition d. none of the above b. bill and hold Which of the accounts would not be included in the Revenue and Collection cycle? a. cash in the bank b. accounts recievable c. raw materials d. bad debt expense c. raw materials Custody is transferred from the warehouse to the shipping department upon authorization of the a. shipping order b. customer order c. purchase order d. invoice a. shipping order A form signed by the carrier to verify goods are shipped is called the a. shipping order b. receiving report c. carrier form d. bill of lading d. bill of lading A fraud technique whereby someone takes a cash receipt and uses a later cash receipt from another customer to cover the first one is called a. kiting b. lapping c. bill and hold d. none of the above b. lapping Approval of credit sales by the credit department supports the assertion of a. existence or occurrence b. completeness c. valuation or allocation d. rights and obligation c. valuation or allocation Confirming accounts recievable primarily supports the assertion of a. existence b. completeness c. valuation or allocation d. rights and obligations a. existence The most reliable evidence comes from a. a positive confirmation b. a negative confirmation c. a blank confirmation d. examining a sales invoice c. a blank confirmation Which of the following responses to a confirmation request at December 31 is a. This amount was paid on December 30th b. we are unable to confirm this account c. we returned these items d. we received these goods on January 4th c. we returned these items Which of the following would be the best protection for a company that wishes to prevent the "lapping" of trade accounts receivable? a. segregate duties so that the bookkeeper in charge of the general ledger has no access to incoming mail b. segregate duties so that no employee has access to both checks from customers and currency from daily cash receipts c. have customers send payments directly to the company's depository bank d. request that customers' payment checks be made payable to the company and addressed to the treasurer c. have customers send payments directly to the company's depository bank Which of the following internal control procedures will most likely prevent the concealment of a cash shortage from the improper write-off of a trade account receivable?receivable?...
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This note was uploaded on 03/20/2012 for the course ACCT 201 taught by Professor Inga during the Spring '12 term at VCU.

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ACCT 241 - To be recognized, revenues must be a. realized...

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