The Ultimate Purpose of a Test of Controls Is to Obtain

question 149

True/False

The ultimate purpose of a test of controls is to obtain reasonable assurance that an assertion is presented fairly in all material respects.

---

Definitions:

Cash Dividends

Payments made by a corporation to its shareholders, typically out of its profits or reserves.

Accrued Liabilities

Financial obligations that a company has incurred during a period but has not yet paid by the end of that period.

Accounts Payable

A liability account that records amounts a company owes to suppliers for goods and services purchased on credit.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financing activities.