Which of the following is true? * O It is appropriate to measure the impairment of receivables based on recognized sales and other revenues. A noninterest-bearing promissory note is measured on the statement of financial position at face value less the amount of unamortized discount. O Sales revenue is increased by a recovery of an account previously written off. When individual customers' accounts have credit balances of material amounts, these amounts must be deducted from the debit balance in other customers' accounts on the statement of financial position.
Which of the following is true? * O It is appropriate to measure the impairment of receivables based on recognized sales and other revenues. A noninterest-bearing promissory note is measured on the statement of financial position at face value less the amount of unamortized discount. O Sales revenue is increased by a recovery of an account previously written off. When individual customers' accounts have credit balances of material amounts, these amounts must be deducted from the debit balance in other customers' accounts on the statement of financial position.
Auditing: A Risk Based-Approach to Conducting a Quality Audit
10th Edition
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter9: Auditing The Revenue Cycle
Section: Chapter Questions
Problem 20MCQ
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Transcribed Image Text:Which of the following is true? *
O It is appropriate to measure the impairment of receivables based on recognized sales and other revenues.
A noninterest-bearing promissory note is measured on the statement of financial position at face value less the
amount of unamortized discount.
O Sales revenue is increased by a recovery of an account previously written off.
When individual customers' accounts have credit balances of material amounts, these amounts must be
deducted from the debit balance in other customers' accounts on the statement of financial position.
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