A CPA Auditing an Electric Utility Wishes to Determine Whether

question 66

Multiple Choice

A CPA auditing an electric utility wishes to determine whether all customers are being billed. The CPA's best direction of test is from the

• A) Meter department records to the billing (sales) register.
• B) Billing (sales) register to the meter department records.
• C) Accounts receivable ledger to the billing (sales) register.
• D) Billing (sales) register to the accounts receivable ledger.

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Definitions:

Containers Refurbished

Refers to the process of repairing, cleaning, and restoring containers to a like-new condition for reuse.

Activity Variance

The deviation between the budgeted amount of activity and the actual amount of activity during a specific period.

Budgeting

A financial planning process for projecting revenues, expenses, and savings goals for a specific period of time.

Net Operating Income

The total profit of a business after subtracting operating expenses but before deducting taxes and interest.