The risk of incorrect acceptance of an account balance as correct, when in fact it is not correct, bears directly on the effectiveness of an audit
a. True
b. False
Indicate whether the statement is true or false
True
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What is a vertical marketing system (VMS)? What are the various types of VMSs?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1) A business maintains a separate Accounts Receivable account for each customer in order to account for payments received from the customer and amounts still owed by the customer. 2) Because customers make payments on account throughout the period, the sum of all balances in subsidiary accounts receivable will not equal the control account balance. 3) By accepting credit and debit cards, companies are able to attract more customers. 4) When businesses accept payment by credit and debit cards, there is almost always a fee to the purchaser to cover the processing costs charged by the card issuer. 5) Sales through credit or debit cards transfer the risk of collection of receivables from the seller to the card issuer.
The omission known as change blindness occurs when ________.
A. a decision maker wants to bring about a change on a whim B. decision makers fail to notice gradual changes over time C. a sudden change is overlooked by decision makers D. decision makers are adamant on maintaining status quo due to a fear of change
The source of the data for debiting Work-in-Process for direct materials is the:
A) purchase order B) purchase requisition C) materials requisition D) receiving report