Which Is Not One of the Tests That Would Be

question 34

Multiple Choice

Which is not one of the tests that would be used in the audit of equipment, depreciation expense, and accumulated depreciation?

• A) Verify the ending balance in the asset account.
• B) Send confirmations to the sales personnel who sold the equipment to the company.
• C) Perform substantive analytical procedures.
• D) Verify current year acquisitions.

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Definitions:

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.

Bond Interest Expense

The cost incurred by an issuer of bonds due to the periodic interest payments made to bondholders.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life, reflecting its consumption or decline in value.

Bond Premium

The excess of a bond's market price over its nominal value.