What Type of Error Is the CPA Most Likely to Discover

question 11

Multiple Choice

What type of error is the CPA most likely to discover when he/she examines all shipping reports dated in January of 20X1,shipped FOB shipping point,which were recorded in December of 20X0 as credit sales?

• A)Accounts receivable are understated at December 31,20X0.
• B)Accounts receivable are overstated at December 31,20X0.
• C)Operating expenses are overstated for the 12 months ended December 31,20X0.
• D)Sales returns and allowance are overstated at December 31,20X0.

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Definitions:

Declarative Memory

A type of long-term memory that involves the recollection of facts, information, and events.

Korsakoff's Syndrome

A chronic memory disorder caused by severe deficiency of thiamine (vitamin B1), most commonly caused by alcohol addiction.

Vitamin B-1

A water-soluble vitamin also known as thiamine, which is essential for glucose metabolism and plays a key role in nerve, heart, and muscle function.

Genetic Defect

An abnormality in an individual's DNA that can lead to various health issues, diseases, or conditions, often inherited from one or both parents.