Multiple Choice
What type of error is the CPA most likely to discover when he/she examines all shipping reports dated in January of 20X1, shipped FOB shipping point, which were recorded in December of 20X0 as credit sales?
A) Accounts receivable are overstated at December 31, 20X0.
B) Accounts receivable are understated at December 31, 20X0.
C) Operating expenses are overstated for the 12 months ended December 31, 20X0.
D) Sales returns and allowance are overstated at December 31, 20X0.
Correct Answer:
Verified
Correct Answer:
Verified
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