Georgina Was Working as the Part-Time Accountant for Three Small

question 51

Multiple Choice

Georgina was working as the part-time accountant for three small businesses.Whenever she could,she pocketed cash and neglected to record the sale in the sales system.The general transaction-related audit objective affected by her actions is

• A)occurrence.
• B)completeness.
• C)accuracy.
• D)posting and summarization.

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Definitions:

Incremental Project Cash Flows

The additional cash inflows or outflows expected from undertaking a specific project, excluding any cash flows not directly attributable to the project itself.

NPV

Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment, representing the difference between the present value of cash inflows and outflows.

IRR

A metric used in financial analysis to estimate the profitability of potential investments, it represents the annualized effective compounded return rate.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and should not influence future business decisions.