When Searching for Unrecorded Liabilities at Year-End, the Population Identified

question 50

Multiple Choice

When searching for unrecorded liabilities at year-end, the population identified for sampling would be

• A) Cash receipts from related parties recorded before year-end.
• B) Creditors whose accounts appear on a subsidiary trial balance of accounts payable.
• C) Cash disbursements recorded in the period subsequent to year-end.
• D) Invoices dated a few days before and after year-end.

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Definitions:

Cognitive Dissonance

The psychological discomfort experienced from holding two or more conflicting beliefs, values, or attitudes.

Contradictory Cognitions

Holding two or more psychological beliefs, ideas, or values that are in conflict with one another.

Social Norms

The unwritten rules that govern the behavior of individuals within a society, guiding what is considered acceptable or unacceptable.

Conform

The act of adjusting one’s behavior or thinking to match those of others or to meet societal standards.