Which of the following accounts does not appear in the acquisition and

Which of the following accounts does not appear in

This preview shows page 8 - 10 out of 25 pages.

71.Which of the following accounts does notappear in the acquisition and expenditure cycle? A. Cash.B. Purchases Returns.C. Sales Returns.D. Prepaid Insurance.72.For which of the following accounts would the matching concept be the most appropriate? 73.Which of the following would notoverstate current-period net income? 74.A client's purchasing system ends with the recording of a liability and its eventual payment. Which of the following best describes auditors' primary concern with respect to liabilities resulting from the purchasing system?
Background image
75.Which of the following is an internal control activity that could prevent a paid disbursement voucher from being presented for payment a second time? A. Vouchers should be prepared by individuals who are responsible for signing disbursement checks.B. Disbursement vouchers should be approved by at least two responsible management officials.C.The date on a disbursement voucher should be within a few days of the date the voucher is presented for payment.D.The official who signs the check should compare the check with the voucher and should stamp PAID on the voucher documents.76.R. Budd, the purchasing agent of Lake Hardware Wholesalers, has a relative who owns a retail hardware store. Budd arranged for hardware to be delivered by manufacturers to the retail store on a cash-on-delivery (COD) basis, thereby enabling his relative to buy at Lake's wholesale prices. Budd was probably able to accomplish this because of Lake's poor internal control over 77.Which of the following is the best audit procedure for determining the existence of unrecorded liabilities?Examine a sample of invoices a few days prior to and subsequent to year-end to ascertain whether they have been properly recorded.
Background image
Image of page 10

You've reached the end of your free preview.

Want to read all 25 pages?

  • Spring '12
  • janigrt
  • d., invoice

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes