Which of the Following Procedures for Detecting Unrecorded Transactions at the Client's

question 25

Multiple Choice

Which of the following procedures for detecting unrecorded transactions at the client's December 31 year-end is least likely to result in discovery of an unrecorded year-end account payable?

• A)Examination of invoices received after year-end.
• B)Examination of vouchers payable entered in the January voucher register.
• C)Examination of January receiving reports prepared for goods shipped FOB destination in December to the client.
• D)Confirmation of year-end accounts payable.

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Definitions:

GDP

Gross Domestic Product (GDP) is the total monetary or market value of all finished goods and services produced within a country's borders in a specific time period.

Deficit Spending

The practice of spending more money than is received in revenue, typically referring to government spending that exceeds its receipts.

Opportunity Cost

The expense incurred by not selecting the second best choice while making a decision or opting among alternatives.

Debt Default

The failure to meet the legal obligations of a loan, such as not making scheduled payments on time.