Which of the Following Control Activities Would an Entity Most

question 24

Multiple Choice

Which of the following control activities would an entity most likely use to assist in satisfying the completeness assertion related to long-term investments?

• A)Senior management verifies that securities in the bank safe-deposit box are registered in the entity's name.
• B)Maintenance of a securities ledger that records all securities owned by the entity.
• C)The treasurer vouches the acquisition of securities by comparing brokers' advices with canceled checks.
• D)The controller compares the current market prices of recorded investments with the brokers' advices on file.

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Definitions:

Machine-Hours

A measure of production time, calculated as the total hours that machines are operating in the manufacturing process.

Job-Order Costing System

An accounting system that accumulates costs for each individual job or project, useful in custom manufacturing environments.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders, based on a certain activity base.

Machine-Hours

A measure of production output or activity based on the number of hours machines are operated in the manufacturing process.