"Amounts Due to Vendors Should Be Accurately and Promptly Classified,summarized,and

question 20

Multiple Choice

"Amounts due to vendors should be accurately and promptly classified,summarized,and reported" is a representative control objective of the

• A) revenue cycle.
• B) finance cycle.
• C) production cycle.
• D) expenditure cycle.

---

Definitions:

Capital Assets

Long-term assets acquired for operation and not intended for sale, including property, plant, and equipment.

Goodwill Impairment

An accounting charge that occurs when the market value of goodwill is less than its recorded value on the balance sheet.

Plant and Equipment

Long-term tangible assets used in the operations of a business to produce goods and services, such as machinery, buildings, and vehicles.

Exchange Gain/Loss

The gain or loss resulting from changes in exchange rates affecting foreign currency transactions.