Verifying the Accuracy of Certain Information,often Through Communication with Third

question 23

Multiple Choice

Verifying the accuracy of certain information,often through communication with third parties,is known as

• A)reperformance.
• B)confirmation.
• C)substantiation.
• D)documentation.

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Definitions:

Gross Method

An accounting practice where discounts for prompt payment are recorded as reductions of expense if taken.

General Journal Entries

Records of financial transactions not assigned to specific accounts in the general ledger, but recorded in a general journal.

Gross Margin

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage, indicating the financial health and efficiency of a product or business.

Gross Margin Ratio

A profitability metric that measures the difference between sales and the cost of goods sold, expressed as a percentage of sales.