If the Auditor Wants to Obtain Evidence as to Whether

question 66

Multiple Choice

If the auditor wants to obtain evidence as to whether the dividend payment was made to the stockholders who owned the stock as of the dividend record date,which of the following would the auditor do?

• A)Recalculate the dividends per share.
• B)Examine the minutes of the board of directors' meetings for authorization.
• C)Trace the payee's name on the canceled check to the dividend records.
• D)Determine that dividend restrictions are adequately disclosed in the financial statements.

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Definitions:

Inherently Distinctive

A characteristic of trademarks that are unique and recognizable enough to be legally protected without proving secondary meaning.

Secondary Meaning

A legal concept whereby a descriptive or generic term acquires distinctiveness associated with a specific product or service over time.

Trademark Dilution

A legal concept where a famous trademark's value is lessened due to its unauthorized use by others, even without causing confusion.

Trademark Infringement

Using a trademark or service mark without permission on goods and/or services, in a way that could confuse, mislead, or cause errors about who provides the goods and/or services.