Gina Is Performing the Audit of the Payables Section of Reno

question 36

Multiple Choice

Gina is performing the audit of the payables section of Reno Inc.She wants to confirm the payables from an independent source.Which of the following actions would achieve this?

• A)Confirm an interco payable with the CEO of the US branch of Reno Inc.
• B)Confirm the account payable with Clarkson Corp.The CFO of Clarkson is the wife of the controller of Reno.
• C)Confirm the line of credit balance with Citizen Bank.Reno does all its banking with Citizen and it also has a long-term loan there.
• D)Confirm the account payable to Suco Inc.The CEO of Reno owns 30% of the outstanding shares of Suco.

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Definitions:

UCC

A broad spectrum of legislation that directs commercial activities in the United States is encapsulated in the Uniform Commercial Code.

Seller/Lessor

A party in a transaction that provides goods or property to a buyer or lessee under the terms of a contract.

Buyer/Lessee

An individual or entity that purchases or leases goods or property from another party under agreed-upon terms.

Common Law Rule

A principle or rule established in previous legal cases that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts.