Which of the Following Is Likely to Be Detected as Part

question 46

Multiple Choice

Which of the following is likely to be detected as part of the audit of the bank reconciliation?

• A)Failure to bill a customer
• B)Duplicate payment of a vendor invoice
• C)Cash received by the client after year end, but included in cash receipts in the current year
• D)An embezzlement of cash by intercepting cash receipts from customers before they are recorded

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Definitions:

Elastic

Describes the sensitivity of demand or supply for a good or service to changes in its price, with higher elasticity indicating greater sensitivity.

Tax Burden

The total amount of taxes imposed on an individual, company, or economic sector by the government, often expressed as a percentage of income or GDP.

Slightly Elastic

Refers to a situation where a small change in price leads to a relatively small change in the quantity demanded or supplied.

Very Inelastic

Describes a situation where demand or supply hardly changes in response to changes in price.