Cash Receipts from Sales on Account Have Been Misappropriated

question 51

Multiple Choice

Cash receipts from sales on account have been misappropriated.Which of the following acts would conceal this fraud and be least likely to be detected by an auditor?

• A)Understating the sales journal by not recording cash sales
• B)Overstating the accounts receivable control account by intentionally misstating prices charged for goods sold
• C)Overstating the accounts receivable subsidiary ledger by not recording payments made by customers
• D)Understating the cash receipts journal by purposely recording incorrect amounts

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