Tests of Controls Over Investing Activity Include

question 21

Multiple Choice

Tests of controls over investing activity include:

• A) tracing securities from the investment ledger to the supporting documents.
• B) reviewing the bank statement for deposits in transit.
• C) recalculating interest expense at the balance sheet date.
• D) All of the above.

---

Definitions:

Future Value

The value of an investment at a specified date in the future, considering factors like interest rates and time.

Present Value

The contemporary valuation of a future quantity of money or cash flow series, assuming a specific interest rate.

Annuity Due

A type of annuity payment where the payment is due at the beginning of each period, rather than at the end.

Expected Cash Flows

The projected amounts of money to be received or paid out by a business within a specified period.