The Red Flag That Is Generally Identified When Employee and Vendor

question 31

Multiple Choice

The red flag that is generally identified when employee and vendor telephone numbers are the same is:

• A) dummy vendors.
• B) employees purchasing goods for personal use.
• C) billing more than once for the same purchase.
• D) providing poor-quality goods.

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Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts to prepare the books for the next period.

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have accrued but not yet been recorded.

Unadjusted Trial Balance

A listing of all the accounts and their balances from the ledger, before any adjusting entries are made for preparing financial statements.

End-of-period Spreadsheets

Summarizing documents prepared at the end of an accounting period that compile balances from ledgers for financial reporting.