The Test of Details of Balances Procedure for PPE Which

question 83

Multiple Choice

The test of details of balances procedure for PPE which requires 'examination of vendor's invoices and land titles and deeds' is done to satisfy which audit objective?

• A) accuracy
• B) classification
• C) existence
• D) rights

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Definitions:

Lost Customer Goodwill

Refers to the adverse impact on a company's brand reputation or customer loyalty due to negative experiences or dissatisfaction.

Shortage Cost

Costs incurred when demand exceeds supply, leading to inventory shortfalls, lost sales, and potential damage to customer satisfaction.

Negative Cumulative Cash Surplus

A financial situation where the cumulative cash flows from a project or business are negative, indicating a deficit.

Borrowing Need

The necessity for an individual or organization to raise funds through loans or debt issuance to finance its operations or investments.