Physically Examining a Client's Assets Is an Audit Procedure

question 27

True/False

Physically examining a client's assets is an audit procedure.

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Definitions:

Lease Receivable

An asset account that records the amount due to be received by a lessor from a lessee under the terms of a lease agreement.

Sales-type Lease

A type of lease where the lessor recognizes immediate profit on the lease, similar to a sale, often used in equipment and vehicle financing.

Long-term Asset

A long-term asset is a resource owned by a company, providing economic benefits for a period extending beyond one year, including property, plant, and equipment.

Balance Sheet

A document that presents a snapshot of a corporation's financial health, by detailing assets, liabilities, and shareholders' equity on a specific date.