When a Sample of Sales Transactions Recorded in the Sales

question 80

Multiple Choice

When a sample of sales transactions recorded in the sales journal is traced back to the customer orders and shipping documents,the auditor is testing the ____________ assertion.

• A) cutoff
• B) authorization
• C) completeness
• D) occurrence

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Definitions:

Fair Values

The valuation received for disposing of an asset or the expense of moving a liability in an organized market activity on the assessment date.

Acquisition

The process of obtaining control of another corporation, purchasing its shares, or assets, to expand or diversify operations.

Voting Common Stock

Shares that give the shareholder voting rights in corporate decisions, typically one vote per share owned.

Preferred Stock

A class of ownership in a corporation with a fixed dividend that is paid out before any dividends to common stockholders.