For Which of the Following Accounts Is the Primarily Substantive

question 19

Multiple Choice

For which of the following accounts is the primarily substantive testing strategy least likely?

• A) bonds payable
• B) trade accounts payable
• C) equipment
• D) capital stock
• E) machinery

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Definitions:

Pension Benefits

The regular payments made to a retired or disabled employee, often based on salary and years of service.

Defined Benefit Plans

Pension plans in which retirement benefits are set according to a fixed formula.

Endowment Funds

Organizations chartered to invest money for usually tax-exempt institutions.

Charitable Organizations

Nonprofit entities that operate for the purpose of providing aid and support to societal, cultural, educational, or environmental causes.