Which of the Following Is Not a Substantive Test of Details

question 47

Multiple Choice

Which of the following is not a substantive test of details for dividends?

• A)Calculation of the dividend payout ratio.
• B)Examination of the minutes of the board of directors' meetings for authorization of the dividend per share amount.
• C)Examination of the minutes of the board of directors' meetings for the dividend record date.
• D)Agreement of the dividend amount with the payment in the cash disbursements journal.

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Definitions:

Quality Is Free

A principle asserting that investing in higher quality processes, materials, and standards reduces costs in the long run by minimizing waste, errors, and defects.

Poor Quality

Refers to products or services that fail to meet acceptable standards or specifications, leading to customer dissatisfaction.

Six Sigma

A quality management methodology aimed at reducing defects and improving processes, utilizing statistical analysis to achieve near-perfect performance.