The Audit Procedures Used to Verify Accrued Liabilities Differ from Those

question 32

Multiple Choice

The audit procedures used to verify accrued liabilities differ from those employed for the verification of accounts payable because:

• A)accrued liabilities usually pertain to services of a continuing nature, while accounts payable are the result of completed transactions.
• B)accrued liability balances are less material than accounts payable balances.
• C)evidence supporting accrued liabilities is nonexistent, while evidence supporting accounts payable is readily available.
• D)accrued liabilities at year-end will become accounts payable during the following year.

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Definitions:

Bandages

Strips of material used to support, protect, or compress a part of the body, often used in the treatment of wounds.

Epinephrine Injection

a medical treatment involving the administration of epinephrine, typically used to treat severe allergic reactions or anaphylaxis.

Aspirin

A medication used to reduce pain, fever, or inflammation.

Insulin Injection

The process of administering insulin directly into the body typically using a needle and syringe or an insulin pen, essential for managing diabetes.