Bank Transfer Schedules Are Used by the Auditor in Dealing

question 45

Multiple Choice

Bank transfer schedules are used by the auditor in dealing with

• A)lapping.
• B)kiting.
• C)embezzlement by omitting outstanding checks on reconciliation.
• D)all of the above.

---

Definitions:

Earnings Per Share (EPS)

A financial ratio that measures the portion of a company's profit allocated to each outstanding share of common stock.

EBIT

EBIT stands for earnings before interest and taxes, and it's a measure of a firm's profit that includes all expenses except interest and income tax expenses.

Operating Leverage (DOL)

A measure of how revenue growth translates into growth in operating income, indicating the fixed versus variable costs of a business.

Variable Cost

A cost that changes in proportion with the level of output or activity.