The Sole Shareholder of Jade Company Had a Contractor Pave

question 53

Multiple Choice

The sole shareholder of Jade Company had a contractor pave the parking lot at the company building as well as the driveway of his home.Both paving jobs were billed to the company on a single invoice.The general balance-related audit objective affected by this activity is

• A)existence.
• B)allocation.
• C)completeness.
• D)rights and obligations.

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Definitions:

Positive Wording

The practice of choosing words that reflect a positive, constructive attitude instead of a negative one.

Extended Warranty

A service contract that extends the warranty period of a product beyond what is offered by the manufacturer.

Replacement Parts

Components that are substituted for the original parts of an item, often due to damage or wear.

Direct Strategy

A communication method that involves straightforwardly presenting the primary message at the beginning of the communication.