Which of These Would Be Considered an Audit Adjusting Entry

question 36

Multiple Choice

Which of these would be considered an audit adjusting entry?

• A) a significant amount of inventory was found which had not been included in the accounts and subsequently was identified by the auditors.
• B) payroll owing for the last five days of the financial year was recorded by management.
• C) the accounts receivable balance is debited by the auditors to separately show customer accounts with credit balances relating to customer advances.
• D) depreciation on the office equipment was recorded by the accountant.

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Definitions:

Ulna

The medial bone of the lower arm.

Ulna

A long bone in the forearm, running from the elbow to the smallest finger, and when in anatomical position, is located on the medial side of the forearm.

Radius

A bone in the forearm that extends from the lateral side of the elbow to the thumb side of the wrist.

Clavicle

A slender, curved long bone that connects the sternum and the scapula; also called the collar bone.