Which Type of Supporting Schedule Is Designed to Show the Activity

question 131

Multiple Choice

Which type of supporting schedule is designed to show the activity in a general ledger account during the entire period under audit?

• A) trial balance
• B) reconciliation of amounts
• C) summary of procedures
• D) analysis

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Definitions:

Dividend-payout Policy

A company's approach to distributing earnings to its shareholders, either in the form of cash dividends or stock repurchases.

Marginal Tax Bracket

The tax rate that applies to the last dollar of the taxpayer's income, indicating the rate at which additional income will be taxed.

After-tax Return

The profit from an investment after all taxes have been subtracted, indicating the net gain to the investor.

Time Horizons

The length of time over which an investment is expected to be held before it is liquidated, ranging from short-term to long-term periods.