The Audit Can Be Divided into Transaction Cycles

question 81

Multiple Choice

The audit can be divided into transaction cycles.Which of the following is NOT one of the transaction cycles?

• A) payroll and personnel cycle
• B) sales and payment cycle
• C) sales and collection cycle
• D) acquisition and payment cycle

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Definitions:

Straight-Line Method

A method of calculating the depreciation of an asset, which allocates an equal amount of depreciation each year over its useful life.

Residual Value

The estimated amount that an asset is expected to realize upon its disposal at the end of its useful life.

Interest Incurred

The cost of borrowing money, often expressed as a rate, that accumulates over the loan period.

Grading Land

the process of leveling or sloping land to prepare it for construction, landscaping, or other uses, often reflected in property development costs.