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NEW QUESTION: 1
A. Option A
B. Option C
C. Option D
D. Option B
Answer: B
NEW QUESTION: 2
Analytical procedures performed during an audit indicate that accounts receivable doubled since the end
of the prior year. However, the allowance for doubtful accounts as a percentage of accounts receivable
remained about the same. Which of the following client Explanation: s would satisfy the auditor?
A. A greater percentage of accounts receivable are listed in the "more than 120 days overdue" category
than in the prior year.
B. The client tightened its credit policy during the current year and sold considerably less merchandise to
customers with poor credit ratings.
C. Internal control activities over the recording of cash receipts have been improved since the end of the
prior year.
D. The client opened a second retail outlet during the current year and its credit sales approximately
equaled the older outlet.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "C" is correct. If a second, similar retail outlet was opened, one would expect sales and accounts
receivable to double. As long as the collection rates for the new outlet's receivables were expected to be
similar to those of the original outlet, the allowance for doubtful accounts as a percentage of accounts
receivable would remain the same.
Choice "A" is incorrect. If more receivables are potentially uncollectible in the current year (as opposed to
the prior year), the allowance for doubtful accounts as a percentage of receivables should increase to
reflect the greater level of estimated bad debts.
Choice "B" is incorrect. Improved control activities related to the recording of cash receipts might result in a
decrease in accounts receivable in the current year as compared to the prior year, not an increase. In
addition, improving such controls would not be likely to affect the allowance for doubtful accounts as a
percentage of receivables.
Choice "D" is incorrect. If the client sold less merchandise to customers with poor credit ratings, the
allowance for doubtful accounts as a percentage of receivables should decrease to reflect the lower level
of estimated bad debts.
NEW QUESTION: 3
Your customer is unable to light message waiting lights at a small branch office using a shared Intuity voice mail system on a QSIG network running DCS. What is the first command you should execute?
A. listip-interfaces
B. display-ip-network-region <x>
C. list media-gateway
D. status station <station number>
Answer: D