Which of the Following Is Not an Example of Early

question 33

Multiple Choice

Which of the following is not an example of early information-gathering activities?

• A) Review of the corporate charter and bylaws.
• B) Review of contracts, agreements, and legal proceedings.
• C) Reading and studying the minutes of the meetings of directors and committees of the board of directors.
• D) Preparing a time budget.

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Definitions:

Bank Reconciliation

The process of matching and comparing figures from banking statements with those in a company’s financial records to ensure accuracy.

Outstanding Checks

Outstanding checks refer to checks that have been written and recorded in the issuing entity's financial records but have not yet been cashed or cleared by the bank.

Notes Receivable

Notes receivable are written promises for amounts to be received by a business, typically indicating interest terms, due dates, and other conditions under which the funds are to be repaid.

NSF Check

Stands for Non-Sufficient Funds Check, which is a check that cannot be processed because the writer’s account does not have enough funds.