Question 1

As the manager of a company, you are concerned that not all customer orders are being shipped. To test whether all orders for the year have been shipped, you would

A. Review all customer order and make sure that each has a related bill of lading

B. Review all customer order and make sure that each has a related sales invoice

C. Review all bills of lading and make sure that each has a related sales invoice

D. Review all sales invoice to make sure that they have been posted in the related journal

E. Review all customer orders to make sure that each has been posted in the related journal

Question 2

Which items in the following list are required for the preparation of a proper bank reconciliation

I. Bank Statement

II. Cash Receipts Journal

III. Sales Journal

IV. General Ledger

V. Prior months bank reconciliation

VI. Cash Disbursements Journal

VII. Account Payable trial balance

A. I, II, III, V, VI

B. I, II, III, IV, V, VI

C. I, II, IV, V, VI, VII

D. I, II, V, VI

E. I, II, IV, V, VI