When a Sample of Sales Transactions Recorded in the Sales

question 7

Multiple Choice

When a sample of sales transactions recorded in the sales journal is traced back to the customer orders and shipping documents, the auditor is testing the ________ assertion.

• A)cutoff
• B)authorization and accuracy
• C)completeness
• D)occurrence

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Definitions:

Debit Balance

A balance occurring when the sum of debits in an account exceeds the sum of credits.

Credits

Accounting entries that can either decrease assets or increase liabilities and equity on a company's balance sheet.

Debits

In accounting, an entry recorded on the left side of a double-entry bookkeeping system that increases an asset or expense account, or decreases equity, liability, or revenue accounts.

Debit

A debit is a bookkeeping entry that leads to an increase in a company's assets or expenses or a reduction in its liabilities or equity on the balance sheet.