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.

---

Definitions:

Citizens' League

An organized group of local citizens, often formed for mutual protection or to enforce local laws or racial norms, especially in areas lacking strong governmental authority.

Black Cabinet

A group of African American advisors to U.S. President Franklin D. Roosevelt during his presidency, who advised on issues affecting black communities.

Titular Head

A person holding a title and often a ceremonial position of leadership but lacking real power or authority.

Black Middle Class

African American individuals and families that fall within the middle-income range, experiencing economic stability and upward mobility, particularly visible post-Great Migration.