The Specific Audit Objective That All Purchase Transactions and Cash

question 29

Multiple Choice

The specific audit objective that all purchase transactions and cash disbursements are valued using GAAP and correctly journalized, summarized, and posted relates to:

• A) rights and obligations.
• B) completeness.
• C) existence or occurrence.
• D) presentation and disclosure.
• E) valuation or allocation.

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Definitions:

Quarter

A period of three months used in financial and business sectors for reporting, forecasting, and dividing the fiscal year.

Tails

The extreme ends of a distribution, representing outcomes that are far from the central peak of the distribution.

Flipping

Flipping typically refers to buying assets, such as real estate or stocks, and quickly selling them for a profit.

Dependent

Being influenced by another variable, in statistics, refers to the variable whose value is predicted in a regression analysis.