An Audit Program for the Examination of the Retained Earnings

question 57

Multiple Choice

An audit program for the examination of the retained earnings account should include a step that requires verification of the:

• A)gain or loss resulting from disposition of treasury shares.
• B)market value used to charge retained earnings to account for a two-for-one stock split.
• C)authorization for both cash and stock dividends.
• D)approval of the adjustment to the beginning balance as a result of a write-down of an account receivable.

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Definitions:

False Doors

Architectural elements found mainly in Ancient Egyptian tombs and mortuary temples, symbolizing a doorway between the worlds of the living and the dead.

The Ka

An ancient Egyptian concept referring to the spiritual duplicate of the body that accompanies every human being throughout this life and into the next.

Hypostyle Hall

A large room with a roof supported by rows of columns, commonly found in ancient Egyptian temples but also used in other ancient architectures.

Column Capitals

The topmost part of a column, which transitions from the vertical shaft to the horizontal load it supports, often elaborately decorated according to different architectural orders such as Doric, Ionic, and Corinthian.