If the Auditor Wants to Obtain Evidence as to Whether

question 66

Multiple Choice

If the auditor wants to obtain evidence as to whether the dividend payment was made to the stockholders who owned the stock as of the dividend record date,which of the following would the auditor do?

• A)Recalculate the dividends per share.
• B)Examine the minutes of the board of directors' meetings for authorization.
• C)Trace the payee's name on the canceled check to the dividend records.
• D)Determine that dividend restrictions are adequately disclosed in the financial statements.

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Definitions:

Input

Inputs like workforce, raw materials, and financial assets employed in the process of manufacturing products or delivering services.

Factor Substitution Effect

The change in the use of factors of production, like labor and capital, resulting from changes in relative prices or technological advancements.

Productivity

The measure of the efficiency of production, often quantified as the ratio of output to input in the production process.

Productivity

Productivity measures the efficiency of production, often quantified as the ratio of output to inputs in the production process across a specific period.