Recording a Sale That Did Not Occur Violates the Occurrence

question 100

True/False

Recording a sale that did not occur violates the occurrence transaction-related audit objective and the existence balance-related audit objective.

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Definitions:

Level Of Activity

The volume of output or production activity attained within a specified period, often used to measure the efficiency and capacity utilization of a business.

Cost Behavior

The manner in which a cost changes in relation to its activity base (driver).

Managerial Decision Making

Involves the process by which managers make choices among possible alternatives to solve problems and take advantage of opportunities.

Variable Costs

Variable costs are expenses that vary directly with the level of production or output, such as materials and labor.