To Verify That All Sales Transactions Have Been Recorded (The

question 59

Multiple Choice

To verify that all sales transactions have been recorded (the completeness assertion) , a test of transactions should be completed on a representative sample drawn from:

• A)the billing clerk's file of sales orders.
• B)entries in the sales journal.
• C)the shipping clerk's file of duplicate copies of bills of lading (goods shipped notices).
• D)a file of duplicate copies of sales invoices for which all pre-numbered forms in the series have been accounted for.

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Definitions:

Present Value

It represents the discounted worth of future cash flows using a specific discount rate, highlighting the time value of money concept.

Capital Investment

Funds invested in a firm or enterprise for the purposes of furthering its business objectives.

Internal Rate

Refers to the rate of growth a project is expected to generate.

Return Method

A sales return approach where the selling price of returned goods is deducted from gross sales to calculate net sales.