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.

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Definitions:

Ownership

The state or fact of possessing something, typically property or goods, having legal rights and full control over it.

Bulk Sales

A transaction in which a business sells a significant portion of its inventory to a single buyer, often as a part of liquidation.

Article 6

A specific provision within a legal document or constitution; the context varies depending on the document (e.g., U.S. Constitution's Article 6 establishes federal laws as the supreme law of the land).

Creditors

Individuals or organizations to whom money is owed.