Which One of the Following Would Be the Most Effective

question 157

Multiple Choice

Which one of the following would be the most effective procedure for discovering material Type II subsequent events?

• A)Updating the search for unrecorded liabilities.
• B)Resending all bank confirmations returned.
• C)Reading of the minutes of board of directors' meetings.
• D)Surprise cash count at random locations.

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Definitions:

Cash Dividend

Cash rewards issued to investors of a certain class by a firm, as determined by the firm's board based on the company's profits.

Common Shares Outstanding

The number of shares that are currently owned by investors, including restricted shares owned by company officers and insiders.

Liabilities

Liabilities refer to the financial obligations or debts that a company owes, which must be paid to others.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock on the open market.