Inspection of Assets Is Not a Sufficient Form of Evidence

question 18

Multiple Choice

Inspection of assets is not a sufficient form of evidence when the auditor wants to determine the

• A)existence of the asset.
• B)quantity and description of the asset.
• C)condition or quality of the asset.
• D)ownership of the asset.

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Definitions:

Full Employment

Full employment refers to a situation where all available labor resources are being used in the most efficient way possible, with no involuntary unemployment.

Equilibrium GDP

The level of Gross Domestic Product at which the total quantity of final goods and services produced equals the total quantity demanded.

Savings

The portion of income that is not spent on current expenditures and is set aside for future use, often in a bank or investment.

Aggregate Demand

The comprehensive call for goods and services within an economic setting, set at a particular total price level for a given temporal duration.