Rev Cycle

Question 1

Valuation and allocation deal with

Answer 1

whether asset, liability, revenue, and expense components have been included in the financial statements at appropriate amounts, and any resulting valuation adjustments are appropriately recorded.

Question 2

Understandability of presentation and classification deal with

Answer 2

whether financial information is appropriately presented and described, and disclosures are clearly expressed

Question 3

Tracing bills of lading to sales invoices provides evidence that:

Answer 3

Shipments to customers were invoiced.

Question 4

racing from the sales journal to bills of lading

Answer 4

provides evidence that recorded sales were shipped.

Question 5

Record count

Answer 5

addresses the completeness

Question 6

Limit tests

Answer 6

would test the reasonableness of data and that the individual sales records were not outside of an expected range.

Question 7

check digits test

Answer 7

used to determine whether all numbers were entered.

Question 8

Run-to-run totals are completed to ensure

Answer 8

that the total of one processing run, plus the input from the next processing run, should equal the result from the second processing.

Question 9

Two assertions for which the confirmation of accounts receivable balances provides primary evidence

Answer 9

Rights and obligations and existence.