The Most Important Means of Verifying Account Balances in the Payroll

question 22

Multiple Choice

The most important means of verifying account balances in the payroll and personnel cycle are

• A) tests of controls and substantive tests of transactions.
• B) analytical procedures and tests of controls.
• C) analytical procedures and substantive tests of transactions.
• D) tests of controls and tests of details of balances.

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Definitions:

Tax Rate

The tax rate is the percentage at which an individual or corporation is taxed by the government on income or profits.

Class 43

Class 43 is a category used in certain tax systems for specific types of assets that qualify for accelerated depreciation, often related to clean energy or energy-efficient equipment.

CCA Rate

The rate of capital cost allowance, which is the amount of depreciation that can be claimed for tax purposes in Canada.

WACC

The method known as Weighted Average Cost of Capital assesses a firm's cost of capital, with a proportional weighting applied to each segment of capital.