To Test for Recorded Sales for Which There Were No

question 5

Multiple Choice

To test for recorded sales for which there were no actual shipments, the auditor vouches from the

• A) bill of lading to the sales journal.
• B) sales journal to the shipping documents.
• C) sales journal to the accounts receivable subsidiary ledger.
• D) bill of lading to the supporting customer order and sales order.

---

Definitions:

Total Assets

The sum of all resources owned by an entity, including both tangible and intangible items, that have value and can be used to meet liabilities.

Liabilities With Priority

Obligations that have a preferential claim on the assets of a company in case of liquidation over other forms of debt.

Unsecured Creditors

Unsecured creditors are entities or individuals to whom money is owed but who have no collateral, security, or lien on any assets of the borrower.

Total Assets

The sum of all assets a company owns, as stated on the balance sheet, including current, fixed, intangible, and other types of assets.