MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question )The composition of Oak and Company's accounts receivable are as follows Over $250,000 5 accounts Between $25,000 and $250,000-80 accounts Less than $25,000 200 accounts The best confirmation strategy for the auditor is: A) positive confirmations on a sample of all 285 accounts. B) positive confirmations on all 5 accounts over $250,000; positive confirmations on sample of the accounts between $25,000 and $25,000; negative confirmations on sample of accounts less than $25,000. C) positive confirmations on all 5 accounts over $250,000; negative confirmations on a sample of the accounts less than $250,000. D) positive confirmations on all a sample of all accounts over $25,000; negative confirmations on a sample of accounts less than $25,000. a a 2) To determine whether sales transactions have been recorded in the proper accounting period, the auditor performs cutoff tests. Which of the following best describes the overall approach used when performing cutoff tests? A) Examine cash receipts in the subsequent period. B) Analyze transactions occurring within a few days before and after year-end. C) Ascertain that management has included in the representation letter a statement that transactions have been accounted for in the proper accounting period. D) Confirm year-end transactions with regular customers. 3) Which of the following accounts is not normally part of the revenue and collection cycle? A) Accounts Receivable C) Cash 3) B) Purchases Returms and Allowances. D) Sales. 4) Tracing shipping documents to prenumbered sales invoices provides evidence that: A) all goods ordered by customers were accounted for. B) no duplicate shipments or billings occurred C) shipments to customers were properly invoiced. D) all prenumbered sales invoices were accounted for Required information cess Problem 14-54 (L0 14-4) pads The following information applies to the questions displayed below Craig and Karen Conder purchased a new home on May 1 of year 1 for $200,000. At the time of the purchase, it was estimated that the real property tax rate for the year would be 1 percent of the property's value. How much in property taxes on the new home are the Conders allowed to deduct under each of the following circumstances? Assume the Conders' itemized deductions exceed the standard deduction before considering property taxes and the property tax is the only deductible tax they pay during the year. (Do not round intermediete calculations. Round your final answers to the nearest whole dollar amount.) ents shots ve Problem 14-54 Part a rk a. The property tax estimate proves to be accurate. The seller and the Conders paid their share of the tax. The full property tax bill is paid to the taxing jurisdiction by the end of the year Deductible property taxes