Extensive Tests of Detail for an Income Statement Account Is

question 3

Multiple Choice

Extensive tests of detail for an income statement account is least likely to be required when:

• A) inherent risk is high.
• B) control risk is high.
• C) detection risk is high.
• D) analytical procedures reveal some unexpected fluctuations.

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Definitions:

Court Consideration

The factors or evidence that a court takes into account when making a decision on a case.

Emancipated by Implied Consent

A legal status where a minor is considered independent from their parents or guardians based on actions that suggest consent, rather than a formal court order.

Reasonable Value

The fair or market value of goods or services, used when a contract does not specify a price or when damages are assessed.

Necessary

Something essential or required in a particular situation, condition, or for a specific purpose.