Which of the Following Could Test the Assertion of Classification

question 14

Multiple Choice

Which of the following could test the assertion of classification for payroll-related liabilities?

• A)Compare items in accrued payroll taxes to the supporting payroll tax return.
• B)Search for unrecorded liabilities.
• C)Examine payroll tax returns to determine that the expense was recorded in the proper period.
• D)Review payroll liabilities for proper reporting as short- or long-term.

---

Definitions:

Discount Bond

A bond sold for less than its face value, where the difference between the purchase price and the face value represents the investor's return.

Registered Form

A security that is registered in the issuing corporation's books in the name of the owner, requiring transfer through formal procedures.

Bond Yields

The return an investor realizes on a bond, often expressed as an annual percentage.

Interest Rate Risk

The potential for investment losses due to fluctuations in interest rates that affect the value of interest-bearing assets.