Which of the Following Could Test the Assertion of Classification

question 14

Multiple Choice

Which of the following could test the assertion of classification for payroll-related liabilities?

• A)Compare items in accrued payroll taxes to the supporting payroll tax return.
• B)Search for unrecorded liabilities.
• C)Examine payroll tax returns to determine that the expense was recorded in the proper period.
• D)Review payroll liabilities for proper reporting as short- or long-term.

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Definitions:

Multiple Means

Refers to having various methods or ways to achieve a particular end.

Error Management Theory

A theoretical framework suggesting that humans have evolved biases in judgment and decision-making processes to minimize costly errors.

Omission Bias

Omission bias is the tendency to favor an act of omission (not doing something) over one of commission (doing something), often due to the fear of making a wrong choice.

Status Quo Bias

A cognitive bias where individuals prefer retaining current conditions to change or new alternatives, due to the perceived comfort or safety in familiarity.