In Tracing Beginning Inventory Balances to Prior Year Working Papers

question 51

Multiple Choice

In tracing beginning inventory balances to prior year working papers, _______.

• A)the auditor should make certain that any audit adjustments agreed upon in the prior year did in fact get recorded
• B)the auditor should make certain that any audit adjustments agreed upon in the subsequent years did in fact get recorded
• C)the auditor should be mindful of the relationship between inventory sales and accounts payable
• D)the auditor should be mindful of the relationship between inventory sales and notes payable

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Definitions:

UCC

The Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Missing Price

A situation where the cost or value of an item is not listed or known.

UCC

A wide-ranging collection of statutes, the Uniform Commercial Code, regulates commercial activities across the United States.

Leases Of Goods

agreements in which one party (the lessee) is granted the right to use certain goods owned by another party (the lessor) for a specified time period and under certain conditions.