Which of the Following Is an Example of Auditing Rather

question 22

Multiple Choice

Which of the following is an example of auditing rather than accounting?

• A)recording purchase amounts in the expense accounts
• B)posting the daily sales totals to the general ledger
• C)recording cash received in the customer account files
• D)evaluating whether accounts receivable are collectible

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Definitions:

Final Trial Balances

Final trial balances are the summary listings of all the ledger accounts right after the closing entries are made at the end of an accounting period, essentially reflecting the balance of every account before the start of a new accounting period.

Adjustments

Modifications made in accounting records to reflect more accurate values or to record transactions not yet entered.

End-of-period Spreadsheet

A document used in accounting that summarizes all accounts and their balances at the end of an accounting period, helping in the preparation of financial statements.

Journal

A formal accounting record in which transactions are logged before they are posted to ledger accounts, detailing the date, accounts impacted, and amounts involved in each transaction.