An Auditor Usually Tests the Reasonableness of Dividend Income from Investments

question 68

Multiple Choice

An auditor usually tests the reasonableness of dividend income from investments in stock of public companies by computing the amounts that should have been received by referring to

• A) Dividend record books produced by investment advisory services.
• B) Stock indentures published by corporate transfer agents.
• C) Stock ledgers maintained by independent registrars.
• D) Annual audited financial statements issued by the investee companies.

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Definitions:

Motor Neurons

Neurons that transmit impulses from the brain or spinal cord to muscles or glands, inducing action.

Electromyography

A diagnostic procedure that assesses the health of muscles and the nerve cells that control them by measuring the electrical activity.

Skeletal Muscles

Voluntary muscles attached to the skeleton that are responsible for movement and are controlled consciously.

Hyoid Bone

A U-shaped bone in the neck that supports the tongue and is associated with swallowing and speech.