The Most Important Test for the Existence/occurrence Objective for Accounts

question 14

Multiple Choice

The most important test for the existence/occurrence objective for accounts receivable is:

• A) internal control over balances confirmed.
• B) ownership of the balances confirmed.
• C) existence of the balances confirmed.
• D) collectability of the balances confirmed.

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Definitions:

Depreciation Costs

The allocation of the cost of a tangible asset over its useful life.

Relevant Costs

All costs that vary with the consequence of a decision.

Irrelevant Costs

Costs that will not be affected by a decision and thus should not influence the decision-making process.

Touch Screen

An electronic visual display that can detect the presence and location of a touch within the display area, used for interaction.