If sales were overstated by recording a false credit sale at the end of the year, where
Question:
a. Inventory.
b. Cost of goods sold.
c. Bad debt expense.
d. Accounts receivable.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 60% (15 reviews)
a Incorrect In credit sales and debit receivables not i...View the full answer
Answered By
PALASH JHANWAR
I am a Chartered Accountant with AIR 45 in CA - IPCC. I am a Merit Holder ( B.Com ). The following is my educational details.
PLEASE ACCESS MY RESUME FROM THE FOLLOWING LINK: https://drive.google.com/file/d/1hYR1uch-ff6MRC_cDB07K6VqY9kQ3SFL/view?usp=sharing
3.80+
3+ Reviews
10+ Question Solved
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
Question Posted:
Students also viewed these Auditing questions
-
If sales and income were overstated by recording a false cash sale at the end of the year, what dangling debit might give the scheme away?
-
The inventory shrinkage at the end of the year was understated by $18,500. (a) Did the error cause an overstatement or an understatement of the gross profit for the year? (b) Which items on the...
-
At the end of fiscal year 2012 (September 30, 2012), the U.S. government owed $16.2 trillion. Who owns that debt? The following table lists the amounts owed as of September 30, 2012. Use a graphical...
-
Describe the Economic Analysis of the Valero Energy Corporation. Demonstrate Valero Energy Corporation is susceptible to Macroeconomic outlook both in the U.S.& foreign markets
-
For a math test on which the mean was 59 and the standard deviation was 4, what is the probability that a student randomly selected from this class will have a score a. between 55 and 65?________ b....
-
Liquid water at 60bar and 250C passes through an adiabatic expansion valve, emerging at a pressure P and temperature T1. If P is low enough, some of the liquid evaporates. (a) If P f = 1.0 bar,...
-
A bar magnet is enclosed by a spherical surface. (a) What is the magnetic flux through the entire surface? (b) If the magnetic flux through the hemisphere closest to the magnet's north pole is...
-
The following items were taken from the financial statements of Sexton Company. (All dollars are in thousands.) Instructions Prepare a classified balance sheet in good form as of December 31,2014....
-
11. SO2Cl2 on reaction with excess of water results into acidic mixture SO2Cl2 + H2O H2SO4 + 2HC1 16 moles of NaOH is required for the complete neutralization of the resultant acidic mixture. The...
-
Young Professional magazine was developed for a target audience of recent college graduates who are in their first 10 years in a business/professional career. In its two years of publication, the...
-
Auditing standards do not require auditors of financial statements to a. Understand the nature of errors and frauds. b. Assess the risk of occurrence of errors and frauds. c. Design audits to provide...
-
One of the typical characteristics of management fraud is a. Falsification of documents in order to misappropriate funds from an employer. b. Victimization of investors through the use of materially...
-
Four people, each with a mass of 72.4 kg, are in a car with a mass of 1 130 kg. An earthquake strikes. The driver manages to pull off the road and stop, as the vertical oscillations of the ground...
-
Evaluate your budget. You should identify the key problems that you faced when constructing the budget and indicate how much confidence you have in the budget that you have produced. This should...
-
Richard has enrolled in a 401(k) savings plan. He intends to deposit $250 each month; his employer does not contribute to his account. True or false: The balance in the account after 40 years is...
-
You are selling your for-profit company and are preparing all the financial documents that would be required by a potential buyer. In this context, which financial statement is the most important?...
-
Which of following sentences demonstrates the concept of clarity and precision? a. The unexpected retirement of five tax preparers created a heavier workload for the remaining staff, causing them to...
-
Sam works for Axis Entertainment, Inc. As part of his employment he is given a laptop computer. Sam uses the laptop for work and occasionally uses the laptop for PERSONAL USE. On the computer he has...
-
Suppose the order of the fifth and sixth cases (the two forwarding sources from the write-back stage) in the HCL code for d_valA were reversed. Write a Y86-64 program that would be executed...
-
In your audit of Garza Company, you find that a physical inventory on December 31, 2012, showed merchandise with a cost of $441,000 was on hand at that date. You also discover the following items...
-
The uniform circular shaft in Figure 5.20 acts as a torsional spring. Assume that the elastic shear modulus of the material is \(G\). Derive the equivalent spring constant corresponding to a pair of...
-
The Securities and Exchange Commission (SEC) found that Centerpulse, Ltd., a publicly traded company based in Switzerland, fraudulently misstated its 2002 third and fourth quarter financial...
-
Identify three tests of controls or substantive tests of transactions in the payroll and personnel cycle that an auditor may perform using audit software.
-
Alyssa Ghose is auditing payroll accruals for a manufacturing company. The client has accrued payroll taxes, accrued vacation pay, and accrued bonuses for salespersons as of the end of the fiscal...
-
A 0.810-kg ball has a velocity of 4.16 m/s to the right. Calculate the momentum of the ball in kg m/s. What velocity does a 10.-g bullet need to have in order to have the same momentum as the ball?...
-
Develop a SWOT analysis of Coles potential business. b. Can Cole be profitable and if so, in what period of time? c. What are the major business assumptions that require verification? d. Does Cole,...
-
The current temperature is 12 oC and the dew point is -29 oC. What is the relative humidity in percentage? Answer to one decimal place. The current temperature is 12 oC and the dew point is -29 oC....
Study smarter with the SolutionInn App