The Purpose of Substantive Procedures Includes Obtaining Direct Evidence as To

question 49

Multiple Choice

The purpose of substantive procedures includes obtaining direct evidence as to:

• A) the reasonableness of the estimates and other information in the financial statements.
• B) the completeness, accuracy and validity of data.
• C) both a and b
• D) none of the above.

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Definitions:

Variable Cost

Charges that adjust according to the volume of goods produced or sold, specifically materials and labor costs.

Opportunity Cost

The foregone benefit that could have been achieved from options not chosen when selecting one among several alternatives.

Property Taxes

Taxes assessed on real estate by local government, based on the property's value.

Contribution Margin

The amount remaining from sales revenue after all variable expenses have been deducted.