A document sent to each customer showing his or her beginning accounts receivable balance and the amount and date of each sale, cash payment received, any debit or credit memo issued, and the ending balance is the: accounts receivable subsidiary ledger.monthly statement. remittance advice. sales invoice.B The document that accompanies the customer's payment is the: 8 Auditing 2 Test Bank
The document that requires adjustments to the customers subsidiary ledger account is the: A document that initiates shipment of goods and indicates the description of the merchandise, the quantity shipped, and customer name and address is the: AThe ________ is a contract between a carrier (e.g., a trucking company and the seller of goods that dictates the details surrounding the shipment of goods. bill of lading sales invoice picking ticket remittance advice AFor a firm that practices good internal controls in the sales and collections cycle, the function of indicating credit approval should be recorded on which of the following documents? ACredit memos are normally issued for what purpose(s)? 9 Auditing 2 Test Bank
AWhich of the following is the appropriate point at which the auditor deems authorization to be critical? Sales should be recorded, at the earliest, when: the order is received. the order is received and credit is approved. credit is approved and it is verified that there is enough inventory to fill the order.the shipment takes place.D Which of the following would least concern an auditor regarding the lack of a specific authorization to conduct the sales transaction? A sales invoice is a document that usually indicates credit approval. Credit should be approved before a customer's order is received. Credit should be approved before goods are shipped to a customer. True False A 10 Auditing 2 Test Bank
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- Spring '17