The audit of year-end physical inventories should include steps to verify that the entity's purchases and sales cutoffs were adequate. The audit steps should be designed to detect whether merchandise included in the physical count at year-end was not recorded as a
A. Sale in the subsequent period.
B. Purchase in the current period.
C. Sale in the current period.
D. Purchase return in the subsequent period.
C. Sale in the current period.
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Selective attention is the tendency to interpret information in a way that will fit our preconceptions
Indicate whether the statement is true or false
Assume that a company received $1,200 in advance for one year membership fee in the fitness center. The entry that would be made to record the recognition of revenue at the end of first month is:
a. Revenue 1,200 Cash 1,200 b. Cash 100 Revenue 100 c. Unearned revenue 100 Revenue 100 d. Revenue 100 Unearned revenue 100
A company had sales of $12,000,000 for the year. Receivables at the end of the year were $1,100,000, which represented an increase of $200,000 over the receivables at the beginning of the year. What was the accounts receivable turnover?
a. 12.0 b. 10.0 c. 10.9 d. 13.3
The issuing bank for a letter of credit is called the correspondent bank
Indicate whether the statement is true or false