Recording a Sale That Did Not Occur Violates the Occurrence

question 100

True/False

Recording a sale that did not occur violates the occurrence transaction-related audit objective and the existence balance-related audit objective.

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Definitions:

Sales

The entire income earned by a company from selling its products or services over a certain time frame.

Net Operating Income

Net Operating Income (NOI) is the total revenue from operations minus operating expenses, excluding taxes and interest.

Break-Even Points

The point at which total costs and total revenue are equal, resulting in no net loss or gain for a business.

Break-Even Sales

The amount of revenue required to cover a company's total fixed and variable costs, beyond which the company starts generating a profit.