Which of These Is Not Considered a Substantive Procedure

question 21

Multiple Choice

Which of these is not considered a substantive procedure?

• A)Tests of controls.
• B)Tests of details of balances.
• C)Analytical procedures.
• D)Tests of details of transactions.

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Definitions:

Operating Activities

Activities that relate directly to the primary business operations of a company, such as selling goods and services.

Sale of Machinery

The transaction involving the disposal of machinery assets, either due to replacement, upgrading, or discontinuation of use, which can impact a company's financial statements.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents, as part of a company's financial operations.

Treasury Stock

Shares that have been issued by a company and then repurchased from the market, reducing the amount of outstanding stock on its balance sheet.