Which of the Following Is the Objective of Journal Entry

question 34

Multiple Choice

Which of the following is the objective of journal entry testing in a forensic accounting engagement?

• A) to create a preliminary hypothesis
• B) to identify and assess any inappropriate or unusual activity
• C) to confirm the reasonableness of the suspicions of fraud
• D) to determine the reliability of the recorded journal entries

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Definitions:

Line Extension

The use of the same brand name within the same product line and represents an increase in a product line’s depth.

Convenience Goods

Products that are inexpensive and readily available, making them easy for consumers to buy frequently with minimal effort.

Consumer Staples

Essential products that consumers continue to demand regardless of economic conditions, such as food, beverages, and household goods.

Specialty Goods

High-value products that are unique or considered luxury items, often requiring a specific purchasing effort by consumers.