1)Which of the following is not an audit procedure for inventories? a)Review cut-off of inventory transactions. b)Take an inventory to ensure all items are counted. c)Test inventory pricing. d)Determine whether inventories have been pledged as collateral for loans. 2) Price testing of inventory items includes: a)agreeing recorded inventory amounts to receiving reports. b)agreeing recorded inventory amounts to recorded test counts. c)agreeing recorded inventory amounts to purchase invoices. d)agreeing recorded inventory amounts to sales prices. 3)Procedures designed to identify obsolete inventory include: a)performing test counts of inventory. b)vouching inventory items to purchase invoices. c)comparison of inventory recorded amounts to current sales prices. d)reviewing shipping and receiving documents around period end. 4)Which of the following is not conducive to effective internal control over inventories? a)All goods should be received by the receiving department. b)Perpetual records should be maintained by the accounting department. c)For all purchases a purchase order should be prepared by the department in need of the material. d)Shipping should be independent of the purchasing function. 5)Which of the following is not a function directly connected to inventories? a)Storing b)Receiving c)Purchasingd)Credit 6)The documents used to transfer goods through production are referred to as: a)purchase orders. b)shipping orders. c)stores receipts. d)move tickets.
1)Which of the following is not an audit procedure for inventories? a)Review cut-off of inventory transactions. b)Take an inventory to ensure all items are counted. c)Test inventory pricing. d)Determine whether inventories have been pledged as collateral for loans. 2) Price testing of inventory items includes: a)agreeing recorded inventory amounts to receiving reports. b)agreeing recorded inventory amounts to recorded test counts. c)agreeing recorded inventory amounts to purchase invoices. d)agreeing recorded inventory amounts to sales prices. 3)Procedures designed to identify obsolete inventory include: a)performing test counts of inventory. b)vouching inventory items to purchase invoices. c)comparison of inventory recorded amounts to current sales prices. d)reviewing shipping and receiving documents around period end. 4)Which of the following is not conducive to effective internal control over inventories? a)All goods should be received by the receiving department. b)Perpetual records should be maintained by the accounting department. c)For all purchases a purchase order should be prepared by the department in need of the material. d)Shipping should be independent of the purchasing function. 5)Which of the following is not a function directly connected to inventories? a)Storing b)Receiving c)Purchasingd)Credit 6)The documents used to transfer goods through production are referred to as: a)purchase orders. b)shipping orders. c)stores receipts. d)move tickets.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1)Which of the following is not an
a)Review cut-off of inventory transactions.
b)Take an inventory to ensure all items are counted.
c)Test inventory pricing.
d)Determine whether inventories have been pledged as collateral for loans.
2) Price testing of inventory items includes:
a)agreeing recorded inventory amounts to receiving reports.
b)agreeing recorded inventory amounts to recorded test counts.
c)agreeing recorded inventory amounts to purchase invoices.
d)agreeing recorded inventory amounts to sales prices.
3)Procedures designed to identify obsolete inventory include:
a)performing test counts of inventory.
b)vouching inventory items to purchase invoices.
c)comparison of inventory recorded amounts to current sales prices.
d)reviewing shipping and receiving documents around period end.
4)Which of the following is not conducive to effective internal control over inventories?
b)Perpetual records should be maintained by the accounting department.
c)For all purchases a purchase order should be prepared by the department in need of the material.
d)Shipping should be independent of the purchasing function.
a)All goods should be received by the receiving department.
5)Which of the following is not a function directly connected to inventories?
a)Storing
b)Receiving
c)Purchasing
d)Credit
d)Credit
6)The documents used to transfer goods through production are referred to as:
a)purchase orders.
b)shipping orders.
c)stores receipts.
d)move tickets.
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