Acg 6635 Chapter 10 Quiz Florida Atlantic University

Chapter 10 Quiz1. Which of the following is not an issue related to the valuation of accounts receivable?a.The valuation of revenue that makes up the detail of accounts receivable.b.A proper allowance for doubtful accounts.c.The net realizable value of accounts receivable.d.Proper cutoff.2. An auditor confirms a representative number of open accounts receivable as of December 31 and investigates respondents' exceptions and comments. By this procedure, the auditor would be most likely to learn about which of the following?a.One of the cashiers has been covering a personal embezzlement by lapping.b.One of the sales clerks has not been preparing charge slips for credit sales to family and friends.c.One of the EDP control clerks has been removing all sales invoices applicable to his account from the data file.d.The credit manager has misappropriated remittances from customers whose accounts have been written-off.3. Cooper, CPA is auditing the financial statements of a small rural municipality. The receivable balances represent residents' delinquent real estate taxes. Internal control at the municipality is weak. To determine the existence of the accounts receivable balances at the balance sheet date, Cooper would most likelya.send positive confirmation requests.b.send negative confirmation requests.c.examine evidence of subsequent cash receipts.d.inspect the internal records, such as copies of