Which of the Following Is a Common Analytical Procedure That

question 51

Multiple Choice

Which of the following is a common analytical procedure that may detect misstatements in cash?

• A)calculation of inventory turnover and gross profit
• B)review of amounts included in the earnings-per-share calculations
• C)comparison of outstanding cheques and deposits in transit with the prior year bank reconciliation
• D)comparison of gross sales on a month by month basis with the prior year

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Definitions:

Joint Tenants

Individuals who own property together with rights of survivorship, meaning upon the death of one tenant, their interest in the property automatically passes to the surviving tenant(s).

Right of Survivorship

A legal principle in joint ownership where the surviving owner(s) automatically inherit the share of a deceased owner.

Executor

An individual appointed in a will to manage the deceased's estate, responsible for settling debts and distributing assets to beneficiaries.

Per Capita

A distribution of property in which each member of a group shares equally.