Which of the Following Is a Substantive Test of Transactions

question 67

Multiple Choice

Which of the following is a substantive test of transactions?

• A)Review personnel policies.
• B)Account for a sequence of payroll cheques.
• C)Reconcile the disbursements in the payroll journal with the disbursements on the payroll bank statement.
• D)Examine printouts of transactions rejected by the computer as having invalid employee numbers.

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Definitions:

Intercept

The point on a graph where a line or curve crosses an axis, often used to determine where a function or equation equals zero.

Least-Squares Regression

A statistical method to determine a line of best fit by minimizing the sum of squares of the distances of data points from the proposed line.

Sum Of Squares

A statistical measure that quantifies the variation or dispersion of a set of data points, by calculating the sum of the squared differences from the mean.

Best-Fitting Line

A line through a scatter plot of data points that best expresses the relationship between those points.