Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
13 Cards in this Set
- Front
- Back
|
Sales shipped FOB destination are recorded when shipped. Some of these are in transit at the balance sheet date. What account balance assertion is violated? |
existence-- A/R, sales, COGS completeness-- inventory |
|
|
An inventory purchase is received but not recorded until the company pays for the goods. What account balance assertion is violated? |
completeness |
|
|
No loss is recorded or disclosed for a pending lawsuit against the client that is material, probable, and can be estimated. What account balance assertion is violated? |
Completeness |
|
|
Repair costs that should be expensed are capitalized. What account balance assertion is violated? |
existence--fixed asset completeness--expense account |
|
|
Sales shipped FOB shipping point are recorded before the balance sheet date but shipped until after the balance sheet date. What account balance assertion is violated? |
existence completeness |
|
|
Wages earned but not paid by the balance sheet date are not recorded. What account balance assertion is violated? |
completeness |
|
|
Collections from customer received after the balance sheet date are recorded as of the balance sheet date. What account balance assertion is violated? |
existence--cash completeness--A/R |
|
|
Reprocessing involves selecting a sample from a population of source documents and reprocessing them to be sure they have all been properly recorded-- relates to what? |
completeness |
|
|
Reprocessing provides evidence that valid transactions that have been recorded is--- |
completeness |
|
|
Vouching involves taking a sample of already recorded transactions and tracing them back to their original source. This relates to-- |
existence |
|
|
Vouching provides evidence on the assertion that recorded transactions are valid. |
existence |
|
|
A sample of items recorded in the sales journal is traced back to shipping documents and customer orders is-- completeness or existence? |
existence |
|
|
Taking a sample from the client's shipping records and tracing that sample through internal processes and into the sales journal and general ledger is -- completeness or existence? |
completeness |
