FALSE Reference Question also found in study guide AACSB Analytic AICPA BB

False reference question also found in study guide

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FALSEReference: Question also found in study guideAACSB: AnalyticAICPA BB: IndustryAICPA FN: Decision MakingBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 07-04 Give examples of substantive procedures in the revenue and collection cycle andrelate them to assertions about account balances at the end of the period.Topic: Substantive Procedures in the Revenue and Collection Cycle11.Inquiries of management usually do notprovide very convincing evidence about the existence and rights assertions. TRUEReference: Question also found in study guideAACSB: AnalyticAICPA BB: Industry40 | P a g e
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AICPA FN: Decision MakingBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 07-02 Describe the revenue and collection cycle; including typical source documents andcontrol procedures.Topic: Revenue and Collection Cycle: Typical Activities12.A computer generally cannot be used for scanning large files of accounts receivable for unusual credit balances. FALSEReference: Question also found in study guideAACSB: AnalyticAICPA BB: IndustryAICPA FN: Decision MakingBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 07-02 Describe the revenue and collection cycle; including typical source documents andcontrol procedures.Topic: Revenue and Collection Cycle: Typical Activities13.The use of confirmations to test accounts receivable is considered a generally accepted audit procedure. TRUEReference: Question also found in study guideAACSB: AnalyticAICPA BB: IndustryAICPA FN: Decision MakingBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 07-04 Give examples of substantive procedures in the revenue and collection cycle andrelate them to assertions about account balances at the end of the period.Topic: Substantive Procedures in the Revenue and Collection Cycle14.Confirmations yield evidence about existence and the gross valuationof a receivable balance. TRUEReference: Question also found in study guideAACSB: Analytic41 | P a g e
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AICPA BB: IndustryAICPA FN: Decision MakingBlooms: UnderstandDifficulty: 2 MediumLearning Objective: 07-04 Give examples of substantive procedures in the revenue and collection cycle andrelate them to assertions about account balances at the end of the period.Topic: Substantive Procedures in the Revenue and Collection CycleMultiple Choice Questions15.To be recognized, revenues must also be realized or realizable and A. Foreseeable.B. Collected.C.Earned.D. Shipped.AACSB: AnalyticAICPA BB: LegalAICPA FN: ResearchBlooms: RememberDifficulty: 1 EasyLearning Objective: 07-01 Discuss inherent risks related to the revenue and collection cycle with a focus onimproper revenue recognition.Source: OriginalTopic: Revenue Recognition42 | P a g e
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  • Fall '11
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