Invoices Are Prepared Using a Date Equal to the Shipping

question 96

Multiple Choice

Invoices are prepared using a date equal to the shipping date.This control pertains to which transaction-related audit objective?

• A)posting and summarization
• B)classification
• C)cutoff
• D)completeness

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Definitions:

Current Liabilities

Short-term financial obligations that a company owes and is expected to pay within one year or its operational cycle, whichever is longer.

Compensating Balance

A minimum bank account balance that a borrower must maintain as a condition for obtaining a loan.

Interest Charges

The cost paid by a borrower for the use of borrowed money, or paid on a deposit or investment.

Needed Funds

The estimated financial resources required for an entity to carry out its planned activities or achieve its goals.