Selecting a Sample of Paid Notes and Tracing Interest to the General

question 84

Multiple Choice

Selecting a sample of paid notes and tracing interest to the general ledger account is a test of the PCAOB assertion for:

• A)accounting.
• B)valuation or allocation.
• C)completeness.
• D)existence or occurrence.

---

Definitions:

National Sales Tax

A tax imposed by the government on sales of goods and services, collected at the point of sale and paid by the final consumer.

Efficiency

The degree to which resources are used optimally to produce goods and services, minimizing waste and maximizing output.

Equality

The state of being equal, especially in status, rights, and opportunities, often pursued as an economic and social policy objective.

Scarce Resources

Resources that are limited in availability and are used to produce goods and services, leading to the necessity of making choices about their allocation.