Auditors Test the Quantity of Materials Charged to Work-In-Process by Tracing

question 111

Multiple Choice

Auditors test the quantity of materials charged to work-in-process by tracing these quantities to

• A) cost ledgers.
• B) perpetual inventory records.
• C) receiving reports.
• D) material requisitions.

---

Definitions:

Memorized Report

A feature in accounting software that allows users to save customized report settings for future use without reconfiguring them each time.

New Group

A category or collection of items or entities that are formed or compiled together for a specific purpose or identification.

IRS

The United States Internal Revenue Service, a federal agency responsible for collecting taxes and administering the Internal Revenue Code.

Accrual Basis

An accounting method where revenues and expenses are recorded when they are earned or incurred, regardless of when the cash is actually received or paid.