Comparing Amounts Selected from the Payroll Account Analysis for Payroll

question 38

Multiple Choice

Comparing amounts selected from the payroll account analysis for payroll accruals to supporting documentation would provide evidence primarily for which assertion?

• A)Completeness.
• B)Existence.
• C)Classification.
• D)Presentation and disclosure.

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Definitions:

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term contracts in proportion to the work completed.

Contract Costs

Expenses directly related to securing and fulfilling a contract, including raw materials, labor, and overhead.

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term projects proportionally to the degree of completion.

Long-Term Contracts

Agreements that extend over a long period, often used in industries like construction or supply services, specifying performance obligations and payment terms.