The Following Audit Procedure Tests Primarily Which Balance- Related Audit

question 73

Multiple Choice

The following audit procedure tests primarily which balance- related audit objective for accounts receivable: Inquire of management whether there are any related- party loans.

• A) Existence
• B) Completeness
• C) Classification
• D) All of the above.

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Definitions:

Magazine Subscription

A magazine subscription is an agreement to receive or gain access to periodic issues of a magazine over a specified period, usually in return for a payment.

Paid

Refers to the status of an obligation or invoice that has been settled or fulfilled through payment.

Vertical Analysis

An approach to financial statement examination whereby each component is presented relative to a foundational number in the report.

Balance Sheet

An accounting summary that captures a company's financial holdings, debts, and stockholders' equity at a given time.