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NEW QUESTION: 1
Tests designed to detect credit sales made before the end of the year that have been recorded in the
subsequent year provide assurance about management's assertion regarding:
A. Existence.
B. Classification.
C. Accuracy.
D. Cutoff.
Answer: D
Explanation:
Explanation/Reference:
Explanation:
Choice "B" is correct. Cutoff tests are designed to determine whether transactions have been recorded in
the proper period. Tests to detect credit sales made before the end of the year that have been (improperly)
recorded in the subsequent year provide assurance about both cutoff and completeness (i.e., whether all
current year sales have been properly included).
Choice "A" is incorrect. Cutoff tests do not determine whether the components of the financial statements
are properly presented, described and disclosed (classification).
Choice "C" is incorrect. The cutoff testing described is designed to identify sales recorded in the
subsequent year that more properly belong in the current year. This relates to the timing of the entry, not to
its accuracy.
Choice "D" is incorrect. To test existence, the auditor would need to start with sales that were recorded in
the current year, not those recorded in the subsequent year.

NEW QUESTION: 2
An increase in sales collections resulting from an increased cash discount for prompt payment would be
expected to cause a (n):
A. Increase in the average collection period.
B. Increase in the operating cycle.
C. Decrease in the cash conversion cycle.
D. Increase in bad debt losses.
Answer: C
Explanation:
Choice "c" is correct. An increase in sales collections would decrease the cash conversion cycle.
Choice "a" is incorrect because the operating cycle (as well as the cash conversion cycle) would
decrease.
Choice "b" is incorrect, as the average collection period would decrease.
Choice "d" is incorrect. Bad debt losses would decrease from an increase in sales collections.

NEW QUESTION: 3
You need to recommend a solution for the user at Contoso to authenticate to the cloud-based sconces and the Azure AD-integrated application. What should you include in the recommendation? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Explanation