The Following Audit Procedure Tests Primarily Which Balance-Related Audit Objective

question 30

Multiple Choice

The following audit procedure tests primarily which balance-related audit objective for accounts receivable: review accounts receivable trial balance for large and unusual receivables.

• A) existence
• B) completeness
• C) classification
• D) all of the above

Record journal entries for equity method income, dividends, and acquisition differentials.

Distinguish between the cost and equity methods of accounting for investments.

Understand and calculate consolidated net income and retained earnings.

Assess the impact of inter-company transactions on consolidated financial statements.

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Definitions:

Meiosis

A type of cell division that reduces the chromosome number by half, creating four haploid cells, each genetically distinct from the parent cell, as seen in the production of gametes and plant spores.

Gametes

Sex cells (sperm and eggs) that carry genetic information for reproduction.

Chromosome Number

The total number of chromosomes in the nucleus of a cell, which varies among different organisms and is characteristic of each species.

Meiosis I

The first division in the meiosis process, where a single cell divides into two cells containing half the original number of chromosomes, contributing to genetic diversity.