Which One of the Following Procedures Would Ordinarily Be Expected

question 44

Multiple Choice

Which one of the following procedures would ordinarily be expected to BEST reveal unrecorded sales at the balance sheet date?

• A) Send accounts receivable confirmation requests.
• B) Apply gross profit rates to inventory disposed of during the period.
• C) Trace shipping documents to the sales journal.
• D) Trace payments received subsequent to the balance sheet date.

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Definitions:

Budgeted Sales Data

Projected figures for sales revenue, volume, and related costs, used for planning and forecasting purposes within a business.

Cash Collections

The process of gathering all cash revenues and receipts by a company over a period of time.

Credit Sales

Sales made by a business that are to be paid for by the customer at a later date.

Cash Receipts

The total amount of cash collected by a business during a specific period, including payments from customers and other sources.