The Starting Point for the Verification of Current Year Acquisitions

question 85

Multiple Choice

The starting point for the verification of current year acquisitions of property, plant, and equipment is normally:

• A) a schedule obtained from the client of all acquisitions recorded in the general ledger during the year.
• B) the acquisitions journal.
• C) the purchase requisitions file.
• D) the property, plant, and equipment account in the general ledger.

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Definitions:

Reverse Order

A sequence of objects or tasks arranged in the opposite manner from which they were initially presented or executed.

Cost Flow Assumption

An accounting method that determines the value of remaining inventory and the cost of goods sold, such as FIFO or LIFO.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to some numbers more than others.