Which of the Following Substantive Tests of Cash Account Balances

question 21

Multiple Choice

Which of the following substantive tests of cash account balances are always performed?

• A) Test cut-off of cash receipts, cash payments and transfers at year-end
• B) Confirm cash held by others
• C) Examine the client's bank reconciliations
• D) All of the above

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Definitions:

Option To Return

A contractual right allowing one party to return a product, asset, or property to the other party under specified conditions.

Risk

The exposure to danger, harm, or loss, whether physical, financial, or emotional, arising from uncertain or unforeseeable events.

Buyer

An individual or entity that makes a purchase or agrees to purchase goods or services.

"On Approval"

A transaction condition allowing a buyer to take merchandise home for a trial period before making a final purchase decision.