Auditors Can Test Whether Dividend Payments Have Been Made to Shareholders

question 62

True/False

Auditors can test whether dividend payments have been made to shareholders by selecting a sample of recorded dividend payments and agreeing payee information on the cancelled check to the dividend records.

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Definitions:

Money

A medium of exchange that facilitates trade, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Present Value Factors

Multipliers used in calculating the present value of a future cash flow, taking into account the time value of money and interest rates.

Future Value Factors

Future value factors are quantitative measures used in calculating the future value of an investment based on its present value, interest rate, and time period.

Cash Flows

Represents the total amount of money being transferred into and out of a business, especially affecting the company's liquidity.