Tests of Details of Balances Are Specific Audit Procedures That

question 59

Multiple Choice

Tests of details of balances are specific audit procedures that are intended to:

• A)test for monetary misstatements in the financial statements.
• B)prove that the accounts with material balances are classified correctly.
• C)prove that the trial balance is in balance.
• D)identify the details of the internal control system.

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Definitions:

Slope

A measure of the steepness or incline of a line, often calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Good A

A generic term often used in economics to describe a type of product or commodity.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can purchase with a given budget at prevailing prices.

Intercepts

Points where a line or curve crosses the axes on a graph, typically used to describe the starting points of equations in coordinate geometry.