Selecting a Sample of Time Clock Cards and Examining Them

question 20

Multiple Choice

Selecting a sample of time clock cards and examining them for evidence of approval by a supervisor then tracing the hours recorded to the payroll registers is a procedure designed to obtain evidence about the control objective(s) of

• A)Validity only.
• B)Authorization only.
• C)Completeness only.
• D)Authorization and completeness.

---

Definitions:

Adjusting Journal Entry

Adjustments made in the financial books at the period's end to accurately distribute profits and costs to the period they belong.

Net Income

The amount of money that remains after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Assets

Resources owned or controlled by a business that are expected to produce future economic benefits.

Prepaid Rent

An asset account showing the amount of rent payments made ahead of time, indicating rent that has been paid but not yet incurred.