1.

The revenue cycle includes all of the following transactions, except:

a. Credit Sales
b. Cash Receipt
c. Inventory Purchase
d. Sales Returns and Allowances
2. This internal control component should provide management with feedback
as to whether internal controls pertaining to revenue cycle transactions and
balances are operating as intended.
a. Monitoring
b. Initial Assessments of Control Risk
c. Information and Communication
d. Control Environment
3. This document is a journal listing of the completed sales transactions.
a. Sales invoice
b. Sales transactions files
c. Authorized price list
d. Sales journal

4. This document is a journal listing of the completed sales transactions.

a. Sales invoice
b. Sales transactions files
c. Authorized price list
d. Sales journal
5. This document shows the description, quantity, and other data pertaining to
a customer order.
a. Customer order
b. Sales order
c. Shipping document
d. Sales invoice
6. All of the following are sales adjustment functions, except:
a. Granting cash discounts
b. Determining uncollectible accounts
c. Recording the cash receipts
d. Granting sales returns and allowances
7. This type of confirmation requires a debtor to respond only when the amount
shown is incorrect.
a. Positive Confirmation
b. Negative Confirmation
c. Avoidance
d. Existence

8. This cutoff test is designed to obtain reasonable assurance that cash receipts
are recorded in the accounting period in which received.
a. Sales cutoff test
b. Sales return cutoff test
c. Vouching revenue transactions
d. Cash receipts cutoff test
EXPENDITURE CYCLE

1. The expenditure cycle consists of all of the following activities, except:

a. Purchase transactions
b. Cash disbursement transactions
c. Sales transactions
d. Purchase adjustments
2. This analytical procedure calculates the average number of days it takes to retire accounts
payables.
a. Current ratio
b. Quick ratio
c. Cost of Goods Sold to Accounts Payable
d. Accounts Payable Turn Days
3. This item is a written offer from the purchasing department to a vendor or supplier to
purchase goods or services specified in the order.
a. Purchase requisition
b. Purchase order
c. Receiving report
d. Receiving file
4. This function of processing of purchase transaction includes placing vendors on an
authorized vendor list and preparing purchase orders.
a. Initiating purchases
b. Receipt of goods and services
c. Recording liabilities
d. Paying liabilities
5. This is a report prepared on the shipment of goods to vendors showing the kinds and
quantities of goods shipped.
a. Purchase Return Authorization
b. Shipping Report
c. Debit Memo
d. Check Summary

6. These items include all checks issued or vouchers paid after the balance sheet date.

a. Purchase return cutoff tests

b. Check summary
c. Subsequent payments
d. Confirmation of accounts payable

PRODUCTION CYCLE
1. This analytical procedure commonly used in the audit of the production cycle is useful
in measuring the effectiveness of the manufacturing process.
a. Inventory Turn Days
b. Inventory Growth to Cost of Sales Growth
c. Finished Goods Produced to Direct Labor
 d. Product Defects per Million

2. This analytical procedure commonly used in the audit of the production cycle is useful
in measuring the effectiveness of the manufacturing process.
a. Inventory Turn Days
b. Inventory Growth to Cost of Sales Growth
c. Finished Goods Produced to Direct Labor
d. Product Defects per Million
3. This document is a record of time worked by an employee on a specific job.
a. Production order
b. Time ticket
c. Move ticket
d. Standard cost master file
4. All of the following are functions of the manufacturing process, except:
a. Initiating production
b. Initiating purchases
c. Production of inventory
d. Recording manufacturing and inventory transactions
5. This analytical procedure commonly used in the audit of the personnel services cycle
may be a measure of productivity per employee.
a. Average payroll cost per employee classification
b. Revenue per employee
c. Total payroll as a percentage of revenues
d. Payroll tax expense as a percentage of gross payroll
6. This record holds all pertinent employment data for each employee.
a. Payroll register
b. Payroll tax returns
c. Employee earnings master file
d. Employee personnel file
7. This report shows each employee’s name, gross earnings, payroll deductions, and net
pay for a period.
a. Clock Card
b. Time Ticket
c. Payroll Register
d. Payroll Check

INVESTING FINANCING

1. This cycle involves activities such as the purchase and sale of land, buildings, and
equipment not generally held for resale.
a. Investing Cycle
b. Financing Cycle
c. Cash Disbursements Cycle
d. Cash Receipts Cycle
2. All of the following are classes of transactions associated with the audit of plant assets,
except:
a. Depreciation Expense
b. Disposal of Fixed Assets
c. Payroll Expense
d. Acquiring of Fixed Assets
3. While auditing the investing cycle, this test of details of balances allows the auditor to
obtain direct personal knowledge of the existence of the plant assets.
a. Inspect plant assets
b. Examine title documents and contracts
c. Impairment of plant assets
d. Review provisions for depreciation
4. This cycle involves activities such as acquiring debt, issuing bonds, and issuing common
stock.
a. Investing Cycle
b. Financing Cycle
c. Cash Disbursements Cycle
d. Cash Receipts Cycle
5. This financing function involves making payments to the proper payees in according
with board of director or management authorizations.
a. Authorizing bonds
b. Authorizing capital stock
c. Paying bond interest and cash dividends
d. Recording financing transactions

6. All of the following are tests of details of balances for the financing cycle, except:
a. Confirmation of accounts payable
b. Confirmation of long-term debt
c. Review authorization and contracts
d. Recalculate interest expense