The Inspecting and Counting of Securities on Hand Is Ordinarily

question 40

Multiple Choice

The inspecting and counting of securities on hand is ordinarily performed simultaneously with the auditor's:

• A) observing of the inventory counting.
• B) inspecting of major additions to plant assets.
• C) confirming of securities held by others.
• D) counting of cash.
• E) recalculating of investment revenue earned.

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Definitions:

Master Budget

A comprehensive financial planning document that consolidates all of a company's budgets for various departments or activities.

Manufacturing Overhead Budget

An estimation of the costs that are not directly attributable to products but are necessary for the manufacturing process, including utilities, depreciation, and maintenance of equipment.

Non-Cash Charges

Expenses reported on the income statement that do not require an actual cash outflow, such as depreciation and amortization.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.