Tests of Details of Balances Are Specific Procedures Intended To

question 35

Multiple Choice

Tests of details of balances are specific procedures intended to:

• A) identify the details of the internal control system.
• B) prove that the accounts with material balances are classified correctly.
• C) prove that the trial balance is in balance.
• D) test for monetary errors in the financial statements.

---

Definitions:

T-statistic

A ratio used in hypothesis testing that compares the observed difference between sample mean and the population mean relative to the sample variability.

Sample Mean

The average of all the data points in a sample.

Z-statistic

The Z-statistic is a type of standard score that indicates how many standard deviations an element is from the mean, used in hypothesis testing for normal distributions.

Standard Error

A measure that describes the distribution of sample means around the population mean in a sampling distribution.