For Internal Control Testing Related to a Financial Statement Audit,the

question 41

Multiple Choice

For internal control testing related to a financial statement audit,the population is usually

• A)all items in the class of transactions or account balance for the year
• B)all items in the class of transactions or account balance for the end of the year
• C)all items in the class of transactions or account balance during the year
• D)all items in the class of transactions or account balance for the beginning of the year

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Definitions:

Investing Activities

Investing activities are financial transactions related to the acquisition or disposal of long-term assets and other investments not considered cash equivalents, as detailed in the statement of cash flows.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of the company, as reported in the statement of cash flows.

Accounts Payable

A company's financial liability to its suppliers or creditors for received goods and services.

Accounts Receivable

Accounts Receivable are amounts owed to a business by its customers from sales or services provided on credit.