Auditors Inspecting a Sample of Accounts Payable Balances Listed on the Ledger

question 111

Multiple Choice

Auditors inspecting a sample of accounts payable balances listed on the ledger and verifying that they are true payables owed by the client gather evidence in support of the _______ assertion.

• A)accuracy
• B)occurrence
• C)completeness
• D)existence

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Definitions:

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating how much of an additional dollar earned will be taken in taxes.

Average Tax Rate

The proportion of total income that is paid as tax, calculated by dividing the total amount of tax paid by the total income.

Income Tax Liability

The total amount of income tax that an individual or corporation owes to the government, based on their taxable income.

Marginal Tax Rate

The rate at which the last dollar of income is taxed, representing the tax burden on the next dollar of income.