The Auditor Has Completed Analyzing the Results of Tests of Details

question 37

Multiple Choice

The auditor has completed analyzing the results of tests of details of the accounts receivable ending balance.Errors totaling $25 000 were found.These exceptions are

• A)indications that the credit limit is being incorrectly applied.
• B)probably cutoff errors that can be explained.
• C)an indication of potential errors in the ending balance.
• D)financial statement misstatements.

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Definitions:

Unit Elastic

Unit elastic describes a situation in which the percentage change in quantity demanded is equal to the percentage change in price, resulting in no overall revenue change for the supplier.

Income Elasticity

A measure of how much the demand for a product or service changes with a change in the consumer's income.

Quantity Demanded

Quantity demanded is the total amount of goods or services that consumers are willing and able to purchase at a given price point, during a specified period.

Consumption

The expenditure by individuals on durable goods, nondurable goods, and services; represented by C.