The Auditor Is Determining That the Correct Selling Price Was

question 44

Multiple Choice

The auditor is determining that the correct selling price was used for billing and that the quantity of goods shipped was the same as the quantity billed. She or he is gathering evidence about which transaction-related audit objective?

• A) existence
• B) completeness
• C) accuracy
• D) cut-off

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Definitions:

Net Income

The amount of money left over after all expenses and taxes are subtracted from total revenue.

Acquisition Cost

The total cost incurred to acquire an asset, including the purchase price and all other expenses necessary to bring the asset into its intended use.

Available-for-Sale Securities

Financial assets that are neither held for trading purposes nor intended to be held to maturity, which can be sold in response to liquidity needs.

Held-to-Maturity Securities

Financial assets that the holder has the positive intent and ability to hold until a specified maturity date.