2
LSU ACCT 4235 Final Exam with verified detailed
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answers
backdating
practice where the effective dates on stock options are deliberately changed for
|| || || || || || || || || || || ||
the purpose of securing extra compensation for management
|| || || || || || ||
strategic reasonsing ||
involves a mental process of anticipating a fraud perpetrator's potential
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methods of engaging in and concealing a fraud
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zero-order reasoning ||
when an auditor and auditee consider only conditions that directly affect
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themselves but not other party || || || ||
first-order reasoning ||
auditor considers conditions that directly affect the auditee
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nonfinancial performance measures || ||
,2
measures that cannot be expressed in monetary units
|| || || || || || ||
Higher-Order Reasoning ||
the auditor considers additional layers of complexity, including how
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management may anticipate the auditor's behavior || || || || ||
topside journal entries || ||
used to create revenues and receivables without underlying documentation
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bad debt expense
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accounts receivable amounts that cannot be collected
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.Gross Profit Margin Ratio
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calculated by dividing gross profit (also referred to as gross margin) by net sales
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Cost of Goods Sold (COGS)
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the cost of the merchandise inventory that the business has sold to customers
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, 2
sales returns
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Refer to merchandise that customers return to the seller after the sale.
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sales return percentage ratio
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measure of the percentage of sales that are returned by customers
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sales discount percentage ratio
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calculated by dividing sales discounts by gross sales
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accounts receivable turnover || ||
A measure of the liquidity of accounts receivable, computed by dividing net
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credit sales by average net accounts receivable.
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number of days in receivables turnover
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calculated by dividing 365 by the accounts receivable turnover
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allowance for uncollectible accounts as a percentage of receivables
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LSU ACCT 4235 Final Exam with verified detailed
|| || || || || || || ||
answers
backdating
practice where the effective dates on stock options are deliberately changed for
|| || || || || || || || || || || ||
the purpose of securing extra compensation for management
|| || || || || || ||
strategic reasonsing ||
involves a mental process of anticipating a fraud perpetrator's potential
|| || || || || || || || || ||
methods of engaging in and concealing a fraud
|| || || || || || ||
zero-order reasoning ||
when an auditor and auditee consider only conditions that directly affect
|| || || || || || || || || || ||
themselves but not other party || || || ||
first-order reasoning ||
auditor considers conditions that directly affect the auditee
|| || || || || || ||
nonfinancial performance measures || ||
,2
measures that cannot be expressed in monetary units
|| || || || || || ||
Higher-Order Reasoning ||
the auditor considers additional layers of complexity, including how
|| || || || || || || || ||
management may anticipate the auditor's behavior || || || || ||
topside journal entries || ||
used to create revenues and receivables without underlying documentation
|| || || || || || || ||
bad debt expense
|| ||
accounts receivable amounts that cannot be collected
|| || || || || ||
.Gross Profit Margin Ratio
|| || ||
calculated by dividing gross profit (also referred to as gross margin) by net sales
|| || || || || || || || || || || || ||
Cost of Goods Sold (COGS)
|| || || ||
the cost of the merchandise inventory that the business has sold to customers
|| || || || || || || || || || || ||
, 2
sales returns
||
Refer to merchandise that customers return to the seller after the sale.
|| || || || || || || || || || ||
sales return percentage ratio
|| || ||
measure of the percentage of sales that are returned by customers
|| || || || || || || || || ||
sales discount percentage ratio
|| || ||
calculated by dividing sales discounts by gross sales
|| || || || || || ||
accounts receivable turnover || ||
A measure of the liquidity of accounts receivable, computed by dividing net
|| || || || || || || || || || || ||
credit sales by average net accounts receivable.
|| || || || || ||
number of days in receivables turnover
|| || || || ||
calculated by dividing 365 by the accounts receivable turnover
|| || || || || || || ||
allowance for uncollectible accounts as a percentage of receivables
|| || || || || || || ||
