Assessed Control Risk and Results of Substantive Tests of Transactions

question 104

Multiple Choice

Assessed control risk and results of substantive tests of transactions are normally unimportant for designing tests of details of balances for which of the following accounts?

• A) accounts receivable
• B) inventory
• C) accounts payable
• D) notes payable

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Definitions:

Net Sales

Net sales is the total revenue from goods and services sold by a business, minus returns, allowances, and discounts, indicating the actual sales revenue.

Cost Of Goods Sold

The direct costs attributable to the production of goods sold by a company, including material, labor, and overhead costs.

Gross Profit Rate

A financial metric that measures a company's gross profit as a percentage of its net sales, indicating the efficiency of production and pricing.

Cost Of Goods Sold

The costs directly related to the creation of products sold by a company, including expenses for raw materials and wages.