Vouching Is Used Primarily to Test Which of the Following

question 40

Multiple Choice

Vouching is used primarily to test which of the following assertions about classes of transaction?

• A)Occurrence.
• B)Completeness.
• C)Authorization.
• D)Classification.

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Definitions:

Pure Discount Securities

Financial instruments that are sold at a discount from their face value and pay no interest until maturity, such as zero-coupon bonds.

Clean Price

The price of a bond excluding any interest that has accrued since issue or during the last coupon payment.

Dirty Price

The price of a bond that includes accrued interest, in contrast to the clean price which excludes it.

Accrued Interest

Interest that has accumulated over a period but has not yet been paid or received.