A Major Consideration in Verifying the Ending Balance in Permanent

question 63

Multiple Choice

A major consideration in verifying the ending balance in permanent assets is the possibility of existing legal encumbrances. Tests to identify possible legal encumbrances would satisfy the audit objective for:

• A) existence.
• B) classification.
• C) detail tie- in.
• D) disclosure.

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Definitions:

Trade Advantages

Benefits that countries obtain from engaging in international trade, such as increased economic efficiency, access to a wider range of goods and services, and enhanced economic growth.

Indian Tribes

Distinct groups of Indigenous peoples recognized by their own cultures, languages, and governance systems, often associated with specific territories.

Great Plains

A vast high plateau of semiarid grassland found in North America, important for agriculture and historically home to many Native American nations.

Indian Wars

The Indian Wars refer to a series of conflicts between European settlers and American Indian tribes in North America from the earliest colonial times through the late 19th century over land, resources, and cultural differences.