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Chapter 12: REVENUE AND INVENTORY RELATED FINANCIAL STATEMENTS F

Total questions: 8

Worksheet time: 3mins

Name
Class
Date
1.

Horizontal and vertical analysis can be used in

a)

Searching for behavioral or verbal and lifestyle symptoms

b)

Searching for control symptoms

c)

Searching for revenue-related analytical symptoms

d)

Searching for accounting documentary symptoms

2.

Sales discount that appear too low and allowance for doubtful debt accounts appear too low are the examples of

a)

Analytical symptoms

b)

Accounting/ Documentary symptom

c)

Control Symptoms

d)

Behavioral or Verbal and lifestyle symptoms

3.

Software can be used to determine if any journal entries are unusual in terms of

a)

Four M’s

b)

Four M’s

c)

Five W’s

d)

Five M’s

4.

As with revenue-related fraud symptoms, the most practical way to look for analytical symptoms is to focus on changes and comparisons within and from the financial statements

a)

True

b)

False

5.

The following is a list of common revenue-related fraud schemes except

a)

cutoff problems

b)

Consignments sale

c)

Bill-and-hold sale

d)

Asset misappropriation

6.

Ease of manipulating net income using revenues and receivables is one of reason why revenues-related frauds are so common

a)

True

b)

False

7.

Which are Common Inventory-Related Fraud Schemes

a)

Double Counting

b)

Consigned Inventory

c)

Cutoff Problems

d)

All of Above

e)

Overestimating Inventory

8.

Cost of Good Sold will Overstated when Purchase of Inventory Understated

a)

True

b)

False