Which of the Following Tests Are Typically Not Necessary When

question 64

Multiple Choice

Which of the following tests are typically not necessary when auditing a client's schedule of recorded disposals?

• A)Footing the schedule
• B)Tracing schedule totals to the general ledger
• C)Tracing cost and accumulated depreciation of the disposals to the property master file
• D)All of the above are necessary.

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Definitions:

Accounts Receivable

Accounts receivable represents money owed to a company by customers for products or services delivered but not yet paid for.

Operating Activities

Activities that relate to a company’s primary business operations, including revenue and expense transactions affecting net income.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal loan amount.

Long-Term Bank Loan

A debt financing obligation issued by a bank or financial institution to a company, with a repayment period exceeding one year.