Which One of the Following Would Be Considered the Most

question 59

Multiple Choice

Which one of the following would be considered the most reliable type of audit evidence?

• A)Purchase orders from vendors.
• B)Customer accounts receivable files.
• C)Computerized general ledger.
• D)Confirmations from banks.

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Definitions:

Total Assets

The sum of all current and non-current assets owned by a business, indicating its total resources.

Cost Per Unit

The total expense incurred in manufacturing or acquiring a product divided by the number of units.

Purchased

Acquired in exchange for money or its equivalent; obtaining ownership of a good or service.

Days' Sales

A financial ratio that measures the average time it takes a company to convert its inventory into sales.