Tests Designed to Detect Payroll Payments Made After the End

question 43

Multiple Choice

Tests designed to detect payroll payments made after the end of the year that have been incurred in the current year provide assurance about management's assertion of:

• A)Inspection
• B)Accuracy
• C)Occurrence.
• D)Cut-off.

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Definitions:

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits.

Post-merger Firm

Describes a company that has emerged after the completion of a merger, incorporating elements and assets from all original entities involved in the merger.

Purchase Accounting Method

A set of accounting techniques used to assess the acquisitions of assets, liabilities, and non-controlling interests of a company.

Goodwill

An intangible asset that arises when a business is acquired for more than the sum of the fair value of its identifiable net assets.