Which of the Following Statements Is Not True

question 148

Multiple Choice

Which of the following statements is not True?

• A)Balance-related audit objectives are applied to ending account balances.
• B)Transaction-related audit objectives are applied to classes of transactions.
• C)Balance-related audit objectives are applied to the ending balance in balance sheet accounts.
• D)Balance-related audit objectives are applied to both beginning and ending balances in balance sheet accounts.

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Definitions:

Underapplied

A term often used in accounting to refer to a situation where the allocated costs are less than the actual costs incurred.

Job Order Cost System

An accounting system that accumulates manufacturing costs separately for each job or order, tracking direct labor, direct materials, and applied overhead.

Oil Refinery

An industrial plant specialized in the process of converting crude oil into various products and fuels such as gasoline, diesel, and jet fuel through various chemical processes.

Hospital

A healthcare institution providing patient treatment with specialized medical and nursing staff and medical equipment.