Question 1
Which of the following is an account that is
not affected by the sales and collection cycle?
◦ cash
◦ accounts receivable
◦ allowance for doubtful accounts
◦ accounts payable
Question 2
The overall objective in the audit of the sales and collection cycle is to evaluate whether the account balances affected by the cycle are fairly presented in accordance with accounting standards.
◦ true
◦ false