Substantive Tests of the Revenue Cycle Typically Do Not Provide

question 76

Multiple Choice

Substantive tests of the revenue cycle typically do not provide evidence of which of the following?

• A)Sales transactions exist and are properly valued.
• B)Accounts receivable exist.
• C)The balance in the allowance account is correct.
• D)Fraudulent transactions are not included in the financial statements.

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Definitions:

Precipitation

Any form of water that falls from the atmosphere and reaches the ground, including rain, snow, sleet, and hail.

Latitude

The measurement of distance north or south of the Equator, expressed in degrees.

Altitude

The height of an object or point in relation to sea level or ground level.

Vegetation

The collective term for plants and trees in an area, encompassing various forms of plant life and growth.