Which of the Following Is Not a Common Test of Controls

question 71

Multiple Choice

Which of the following is not a common test of controls for marketable securities?

• A)Review the minutes of the board meetings.
• B)Review broker's advice for accurate recording of security.
• C)Inquire of management about its process for reclassifications.
• D)Review reports of internal audits.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year.

Dividend Yield

A metric indicating the annual dividends a firm distributes in relation to its share price.

Asset Turnover

A financial ratio indicating how efficiently a company uses its assets to generate revenue.

Inventory Turnover

is a ratio showing how many times a company's inventory is sold and replaced over a specific period, highlighting the efficiency of inventory management.