Which of the Following Is the Most Appropriate Test for Auditing

question 5

Multiple Choice

Which of the following is the most appropriate test for auditing inventory in the land development and home building industry?

• A) Examine subsequent invoices received in support of estimates of the cost of sales for individual units sold just before year end.
• B) Calculate estimated ending inventory using standards and variance information.
• C) Review sales contracts for bill-and-hold transactions.
• D) All of the above tests are common in the land development and home building industry.

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Definitions:

Squirrel-Cage Rotor

A type of rotor in an induction motor, characterized by its cylindrical shape with conductive bars running the length of the cylinder and connected at both ends by conductive rings, creating a cage-like appearance.

Frequency

The number of cycles (of a repeating event) per unit time, measured in hertz (Hz) in the context of waves or electrical signals.

Synchronous Speed

The rotation speed at which the magnetic field in the stator rotates in synchronous machines, typically equal to the AC supply frequency divided by the number of pole pairs.

Synchronous Motor

An AC motor that operates at a constant speed, set by the power supply frequency, and whose rotor is synchronized with the magnetic field of the stator.