Tests of Controls Should Be Performed After Substantive Tests of Transactions

question 59

True/False

Tests of controls should be performed after substantive tests of transactions.

Understand the basic concepts of journal entries, including compound entries and the debit and credit system.

Define and differentiate between calendar year, accounting period, and fiscal year.

Recognize the proper use and significance of the posting reference column in the ledger.

Prepare and record transactions in journal entries.

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Definitions:

Reference Group

A group to which an individual or another group is compared, serving as a model for behaviour or beliefs.

Social Class

A division of society based on social and economic status, affecting people's opportunities, lifestyle, attitudes, and behavior.