The Journal Entry Testing Prescribed by SAS No

question 49

Multiple Choice

The journal entry testing prescribed by SAS No.99 identifies several common characteristics of fraudulent entries.Which of the following is one such characteristic?

• A) an entry for credit sales to a buyer who does not pay his dues on time
• B) an entry for repairs and maintenance of plant made every period
• C) an entry for creating provisions for bad debts
• D) an entry for asset made by the managing director of the company

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Definitions:

Raw Materials Production

The process involved in generating or extracting the basic materials that are subsequently processed to become components or products.

Production Budget

An estimate of the cost to manufacture a set of products in a specified period.

Raw Materials Inventory

The value of all the materials that are yet to be used in manufacturing.

Required Production

The quantity of products that a company must manufacture in a specific period to meet customer demand and inventory policies.