To Determine Whether Accounts Payable Is Complete,an Auditor Performs a Test

question 40

Multiple Choice

To determine whether accounts payable is complete,an auditor performs a test to verify that all merchandise received is recorded.The population of documents for this test consists of all ________.

• A)payment vouchers
• B)receiving reports
• C)purchase requisitions
• D)vendor's invoices

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Definitions:

Dividends Account

An account in a company's financial records where dividend payments are recorded, reflecting distribution of profits to shareholders.

Debit Balance

A situation in accounting where the sum of debits exceeds the sum of credits, often indicating the amount owed or an asset's value.

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.

Services Revenue

Income earned by a company through the provision of services to customers.