Which of the Following Misstatements Could Be Detected as Part

question 13

Multiple Choice

Which of the following misstatements could be detected as part of the tests of a bank reconciliation?

• A)payment of interest to a related party at an incorrect rate
• B)exclusion of mortgage interest receivable from the balance sheet
• C)deposits recorded as cash receipts at the end of year,but included as outstanding deposits (deposits in transit)
• D)a defalcation of cash by interception of collections before they are recorded

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Definitions:

Breakdown Maintenance

involves repairs or adjustments made after equipment has failed, aiming to restore it to operational condition.

MTBF

"Mean Time Between Failures," a reliability measure for products indicating the average time between operational failures.