Which of the Following Tests Determine Whether Accounting Transactions Have

question 65

Multiple Choice

Which of the following tests determine whether accounting transactions have been properly authorised, correctly recorded and summarised in the journals, and correctly posted to subsidiary ledgers and the general ledgers?

• A) substantive tests of balances
• B) substantive tests of transactions
• C) tests of controls
• D) analytical procedures

---

Definitions:

Positive Correlation

A relationship between two variables where an increase in one variable is associated with an increase in the other.

Negative Correlation

Negative Correlation refers to a relationship between two variables where one variable increases as the other decreases, and vice versa.

Null Relationship

indicates a situation where no association is found between two variables being studied.

Internal Reliability

When all of the items on a questionnaire measure the same thing.