ACNT 2331 - Chap 11 Exam Questions And

Correct Answers

1. Receivables written off are often turned over to a ___________.

2. A ___________ is a shipping document that is prepared for goods shipped by a

common carrier.

3. The best evidence of collectibility of accounts receivable is examination of

subsequent ___________ of the accounts.

4. A test of the completeness of recorded sales involves tracing a sample of ___________

to recorded sales.

5. An ___________ of customers' accounts receivable should be prepared at regular

intervals for use by the credit department in carrying out its collection program. -

ANSWER 1. collection agency

2. bill of lading

3. collections

4. shipping documents

5. aged trial balance

Which of the following is least likely to be considered an inherent risk relating to

receivables and revenues? - ANSWER Over-recorded sales due to a lack of control over

the sales entry function.

Check my work Check My Work button is now enabled Item 2 Item 2 10 points

Which of the following would provide the most assurance concerning the valuation of

accounts receivable? - ANSWER Assess the allowance for uncollectible accounts for

reasonableness.

Which of the following is most likely to be an example of fraudulent financial reporting

relating to sales? - ANSWER Recording sales when the customer is likely to return the

goods.

Which of the following is an example of misappropriation of assets relating to sales? -

ANSWER Theft of cash register sales.

The auditors should confirm accounts receivable unless the auditors' assessment of the

risk of material misstatement is low: - ANSWER And accounts receivable are immaterial,

or the use of confirmations would be ineffective.