An Auditor Reconciles the Total of the Accounts Receivable Subsidiary

question 51

Multiple Choice

An auditor reconciles the total of the accounts receivable subsidiary ledger to the general ledger control account as of October 31. By this procedure, the auditor would be most likely to learn about which of the following?

• A)An October invoice was improperly computed.
• B)An October check from a customer was posted in error to the account of another customer with a similar name.
• C)An opening balance in a subsidiary ledger account was improperly carried forward from the previous accounting period.
• D)An account balance is past due and should be written off.

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Definitions:

Private Spaceports

Facilities owned by non-governmental entities used for launching spacecrafts privately.

Absolute Liability

Absolute liability refers to a legal responsibility for damages or injury, even in the absence of fault or negligence.

Personal Injury

Harm to a person's body, emotions, or reputation, as opposed to damage to property, often the basis of legal claims.

Property Damage

entails harm or destruction to physical assets, including real estate and personal property, which can result in loss of value or function.