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:

Direct Investment

An investment in the form of a controlling ownership in a business in one country by an entity based in another country.

Exporting

The business practice of selling goods or services produced in one country to buyers in another country.

Indirect Export

The process of selling goods or services to a foreign market through intermediaries, rather than directly to the end purchaser.

Japanese Distributors

Companies or individuals in Japan that distribute products or services from manufacturers to retail locations or directly to consumers within the Japanese market.