Tests of Details of Balances Only Involve the Use of Comparisons

question 104

True/False

Tests of details of balances only involve the use of comparisons and relationships to assess the overall reasonableness of account balances.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered or used, but not yet paid for.

Payables

Amounts owed by a company to suppliers or creditors for goods and services received.

Inventory

The raw materials, work-in-progress products, and completely finished goods that are considered to be the portion of a business's assets that is ready or will be ready for sale.

Asynchronization

The lack of synchronization; occurring not simultaneously or at different times or rates.