Bill returned all of the $5,700 purchase of equipment to Sue. The company uses the voucher system. The entry to record this is:

A company sells $ 180,000 (sales price) of goods and collects sales tax of 8%. What current liability does the sale create?

A. Sales tax payable of $ 14, 400 B. Sales revenue of $ 194, 400 C. Unearned revenue of $ 14, 400 D. None; the company collected cash up front.

An IS Auditor discovers that an information processing facility's business continuity plan provides for an alternate processing site which will accommodate fifty percent of the primary processing facility's processing capability. Based on this discovery, which of the following actions should the IS auditor take?

A. Do nothing, because generally, less than twenty-five percent of all processing is critical to an organization's survival and the backup capacity is therefore adequate. B. Identify applications that could be processed at the alternate site and develop manual procedures to back up other processing. C. Ensure that critical applications have been identified and that the alternate site could process all such applications. D. Recommend that the information processing facility arrange for an alternate processing site with the capacity to handle at least seventy-five percent of normal processing.