When Testing the Existence Objective for Sales, the Direction of Tests

question 92

True/False

When testing the existence objective for sales, the direction of tests should be from the journals back to supporting documents.

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Definitions:

Eliminating Journal Entries

Eliminating journal entries are used in the consolidation process to remove the effects of inter-company transactions among entities within a consolidated group.

Consolidated Worksheet

An internal document used by accountants to combine the financials of a parent company and its subsidiaries, helping in the preparation of consolidated financial statements.

Consolidated Bonds Payable

The total amount of bonds owed by both a parent company and its subsidiaries as presented in consolidated financial statements.

Proposal

A plan or suggestion put forward for consideration or discussion, especially in a business or formal context.