Which of the Following Would Not Ordinarily Be Considered When

question 48

Multiple Choice

Which of the following would not ordinarily be considered when using analytical procedures to verify the overall reasonableness of revenue and expense accounts?

• A)Current-year recorded (unaudited)balances.
• B)Expected balances using a statistical analysis or relationships among accounts.
• C)Internal budgets and reports.
• D)Prior-year balances.

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Definitions:

Revenue

Income generated from normal business operations, often from the sale of goods and services to customers.

Credit Customer

A customer who purchases goods or services on credit, agreeing to pay at a later specified date.

Expense

Money spent or cost incurred in an entity's efforts to generate revenue.

Asset

Resources owned by a business or individual that have economic value or future benefit.