Which of the Following Is an Example of a Test

question 78

Multiple Choice

Which of the following is an example of a test of controls?

• A)Examining the reasonableness of interest accrued on notes payable.
• B)Verify that cash surrender value of life insurance is classified as a long-term asset.
• C)Using a spreadsheet to create a pivot table for the summarization of accounts receivable.
• D)Reviewing management's monthly bank reconciliations.

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Definitions:

Probate Court

A specialized court that deals with the distribution of a deceased person's estate, including the validation of wills and resolution of contested issues.

Decedent's Estate

The total property, assets, and debts left behind by an individual at the time of their death.

Administration

In a business context, it refers to the process of managing and operating a business or organization; in a legal context, it could refer to managing the estate of a deceased person.

Equitable Title

A right to receive legal title to property upon fulfilling specific conditions, often related to contracts or trusts.