A Substantive Test of Transactions to Test the Completeness Assertion

question 11

Multiple Choice

A substantive test of transactions to test the completeness assertion includes

• A) Tracing a sample of time cards to the payroll register.
• B) Testing a sample of payroll checks for the presence of an authorized time card.
• C) Testing postings to the payroll register for a sample of payroll checks.
• D) Recomputing the accuracy of a sample of payroll checks.

---

Definitions:

Cost of Goods Sold

Cost of goods sold (COGS) is the direct cost attributed to the production of the goods sold by a company, including the material and labor expenses.

Gross Profit

The distinction between sales income and the expense of goods sold prior to subtracting overhead costs, wages, taxes, and interest charges.

Periodic

Relating to or occurring at regular intervals; in accounting, it may refer to methods or adjustments made at regular intervals, such as the Periodic Inventory Method.

Inventory Method

An accounting approach used to value inventory, including procedures like First-In, First-Out (FIFO) or Last-In, First-Out (LIFO).