Rolland Meilleur, Public Accountant, Is Testing Whether His Client's Account

question 56

Multiple Choice

Rolland Meilleur, public accountant, is testing whether his client's account coding on each purchase order is checked by the computer to a table of valid account numbers, and that various logic tests are performed by the computer. He is trying to mitigate the following from going wrong:

• A) detective controls not being in place.
• B) amounts being posted to the wrong accounting period.
• C) transactions being classified and coded to incorrect accounts.
• D) all of the above.

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Definitions:

Split-Off Point

The stage in a production process where joint products can be recognized as separate products, capable of being sold independently.

Joint Manufacturing Process

A production process where two or more products are produced simultaneously from the same raw materials or inputs.

Multiple Outputs

Multiple outputs refer to the various products or services that result from a single production process or system.

Net Realizable Value

Net realizable value is the estimated selling price of goods, minus the costs of their sale or disposal, used in inventory valuation and accounts receivable.