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.

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Definitions:

Midsize-Business

A company that occupies the middle ground in terms of its size and revenue, between small businesses and large corporations.

Registration Requirements

Legal or regulatory mandates that entities must fulfill to register a product, business, or activity with the relevant authorities.

Noninvestment Company

A company whose primary business involves activities other than investing, reinvesting, owning, holding, or trading in securities.

SEC Rule 10b-5

A rule of the Securities and Exchange Commission that prohibits the commission of fraud in connection with the purchase or sale of any security.