Which of the Following Most Likely Would Be Detected by a Review

question 97

Multiple Choice

Which of the following most likely would be detected by a review of a client's sales cutoff?

• A) excessive sales discounts
• B) unrecorded sales for the year
• C) unauthorized goods returned for credit
• D) lapping of year-end accounts receivable

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Definitions:

Installment Notes

Financial instruments that require the issuer to make payments to the holder over a specified period, usually including both principal and interest.

Accrued Interest

The interest on a loan or bond that has accumulated since the principal investment, or last payment, and has yet to be paid.

Principal

The original sum of money borrowed in a loan or the initial amount of investment, excluding any interest or dividends.

Issue Price

The price at which new shares, bonds, or other securities are offered to the public or institutional investors for the first time.