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Identify whether the following tests are substantive analytical procedures, tests of details of transactions, or tests of details of account balances:
1)Test a sample of purchase requisitions for proper authorization.
2)Test transactions around year-end to determine if they are recorded in the proper period.
3)Review results of confirmation of selected accounts payable.
4)Compare payables turnover to previous years' data.
5)Obtain selected vendors' statements and reconcile to vendor accounts.
6)Compare purchase returns and allowances as a percentage of revenue or cost of sales to industry data.
Proprietorship
A business structure owned by a single individual where there's no legal distinction between the owner and the business entity.
Legal Dissolution
The process of legally dissolving a company, terminating its existence by the law.
New Partner
An individual who joins an existing partnership, contributing capital, and sharing in profits, losses, and liabilities.
Unlimited Liability
A legal structure where a business owner or partners are personally responsible for the debts of the business.
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