When Performing Tests of Controls and Tests of Transactions for Sales

question 73

Multiple Choice

When performing tests of controls and tests of transactions for sales, the auditor generally defines the population as:

• A) all accounts receivable transactions for the year.
• B) all sales invoices for the year.
• C) all cash receipts transactions for the year.
• D) all sales invoices less sales return credit memos.

Comprehend the significance of amortization of discounts on bonds and investment, and its reflection on cash flows.

Recognize the implications of changes in liabilities and assets, such as salaries payable and prepaid expenses on cash flow.

Interpret the effect of subsidiary losses and gains from disposals of equipment on cash flows.

Understand the role of deferred tax liabilities in cash flow calculations.

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Definitions:

Bisexuals

Individuals who are sexually attracted to both men and women.

Sexual Identity

An individual's personal sense of their own sexuality, which may include elements such as sexual orientation, preferences, and gender identity.

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A social and political movement advocating for the rights and empowerment of LGBTQ+ individuals.

Same-sex Orientation

A romantic or sexual attraction to individuals of the same sex.