Two Months Before Year-End, the Bookkeeper Erroneously Recorded the Receipt

question 25

Multiple Choice

Two months before year-end, the bookkeeper erroneously recorded the receipt of a long-term bank loan by a debit to cash and a credit to sales. Which of the following is the most effective procedure for detecting this type of error?

• A)Analysis of the notes payable journal.
• B)Analysis of bank confirmation information.
• C)Preparation of a year-end bank reconciliation.
• D)Preparation of a year-end bank transfer schedule.

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Laws and regulations intended to safeguard buyers of goods and services from unfair, deceptive, or harmful practices by sellers.

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An individual who exposes illegal, unethical, or wrong practices within an organization to the public or to authorities.

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