Which of the Following Statements Is NOT True About the Cycle

question 79

Multiple Choice

Which of the following statements is NOT true about the cycle approach to segmenting an audit?

• A) All general ledger accounts and journals are included at least once.
• B) The 'inventory and warehousing' cycle may be audited at any time during the engagement since it is unrelated to the other cycles.
• C) The 'capital acquisition and repayment' cycle is closely related to the 'acquisition of goods and services and payment' cycle.
• D) Some journals and general ledger accounts are included in more than one cycle.

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Definitions:

Scoria

A highly vesicular, dark colored volcanic rock that may or may not contain crystals, typically formed from the cooling of lava.

Tephra

Volcanic material ejected into the air during an eruption, including ash, bombs, and blocks, which can affect wide areas downwind of a volcano.

Composite Volcano

A type of volcano formed by alternating eruptions of lava and volcanic ash, leading to a layered structure.

Caldera

A large volcanic crater, typically formed by the collapse of land following a volcanic eruption.