You are concerned with unrecorded transactions in the purchasing cycle. Which audit procedure are you most likely to use when auditing purchases?
A. Tracing vendor invoices to accounting records.
B. Recalculation of vendor invoice amounts.
C. Confirmation of customer accounts.
D. Vouching transactions in accounting records to vendor invoices.
Answer: A
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Which of the following is a commercial data-mining software?
a. ACL b. QuickBooks c. Peachtree d. Excel
Steve owns 64% and Mark owns 36% of a partnership business. They purchase equipment with a suggested value of $9600. The current market value of the equipment at the time of purchase was $9100. At the time of the balance sheet preparation, depreciation of $160 was recorded. Based on the information provided, which of the following is TRUE of the partnership?
A) The Equipment account will be debited at $9100 on the date of purchase. B) The Equipment account will be debited at $8940 on the date of purchase. C) The Equipment account will be debited at $9600 on the date of purchase. D) The Equipment account will be debited at $9440 on the date of purchase.
Unit fixed costs vary inversely with activity or volume
Indicate whether the statement is true or false
Changes in fair value of securities are reported in the income statement for which type of securities?
a. Marketable equity securities b. Available-for-sale securities c. Held-to-maturity securities d. Trading securities