Tests Designed to Detect Purchases Made Just Before Year-End That

question 66

Multiple Choice

Tests designed to detect purchases made just before year-end that have been recorded in the subsequent year would provide assurance about management's assertion of:

• A)accuracy.
• B)occurrence.
• C)cut-off.
• D)classification.

---

Definitions:

Reducing Headcount

A strategy used by businesses to lower expenses by decreasing the number of employees through layoffs, attrition, or retirements.

White Knights

Third-party entities that come to the rescue of a company facing a hostile takeover by making a more favorable offer.

Takeovers

The acquisition of one company by another, which can be achieved through purchasing a controlling interest in the target company's stock.

Social Glue

This concept pertains to the elements, such as shared values, norms, or activities, that hold a group or society together by fostering cohesion and a sense of belonging among its members.