The Assertion That Auditors Will Probably Emphasize in the Revenue

question 38

Multiple Choice

The assertion that auditors will probably emphasize in the revenue and collection cycle is:

• A)occurrence.
• B)completeness.
• C)accuracy.
• D)classification.

Comprehend the use and avoidance of technical jargon, clichés, euphemisms, and dysphemisms in professional settings.

Understand and apply principles of inclusive and non-biased communication.

Recognize and utilize specific and clear language in business writing.

Distinguish between connotative and denotative meanings of words.

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Definitions:

Prepaid Expenses

Payments made in advance for goods or services to be received in the future, recorded as assets until they are consumed.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Accounts Receivable

Money owed to a company by its customers or clients for goods or services provided on credit.

Revenues

The total income generated from normal business operations, including sales of goods or services before any expenses are deducted.