An Example of an External Document That Provides Reliable Information

question 28

Multiple Choice

An example of an external document that provides reliable information for the auditor is:

• A)employees' time reports.
• B)bank statements.
• C)purchase order for company purchases.
• D)carbon copies of checks.

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Definitions:

Real Output

The quantity of goods and services produced in an economy, adjusted for inflation, representing true productivity.

Long-Term Contracts

Agreements between parties that last over an extended period, often used to secure pricing, terms, and conditions.

Federal Deposit Insurance Corporation

A U.S. government agency that protects depositors in the event of a bank failure by insuring deposits up to a certain limit.

Money Supply

The total amount of money available in an economy at a specific time.