Which of the Following Is an Example of the Type

question 83

Multiple Choice

Which of the following is an example of the type of analytical procedures that an auditor would use for inventory?

• A)Number of day's sales in receivables compared to industry averages.
• B)Inventory turnover for the previous five years.
• C)Days outstanding in accounts payable.
• D)Salaries of marketing personnel as a percent of total inventory.

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Definitions:

Unsecured Bond

A bond that is not backed by collateral or specific assets and is solely based on the issuer's creditworthiness.

Face Value

The nominal or original value of a security or currency as stated by the issuer, not necessarily its market value.

Credit Rating

An assessment of the creditworthiness of a borrower, either a business or a governmental entity, reflecting their ability to repay borrowed money.

Bondholder

An investor who owns bonds issued by a corporation or government, entitling them to receive fixed interest payments.