Possible Misstatements Related to the Occurrence Assertion for Payroll Transactions

question 63

Multiple Choice

Possible misstatements related to the occurrence assertion for payroll transactions include all of the following except:

• A) Payments to fictitious employees.
• B) Payments to terminated employees.
• C) Payments to valid employees who have not worked.
• D) Payments to valid employees at a rate in excess of the authorized amount.

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Definitions:

Economic Stability

A state of steady financial conditions characterized by low inflation, steady growth, and low unemployment rates.

Internal Cost

Expenses that are directly attributable to a specific project or activity, including materials, labor, and direct overhead.

Domestic Car

A vehicle manufactured within a country, typically marketed and sold to the residents of that country.

Manufacture

The process of producing goods on a large scale using labor, machines, tools, and chemical or biological processing.