The Client May Use a Variety of Methods to Understate

question 98

Multiple Choice

The client may use a variety of methods to understate expenses and payables.These include

• A)failure to record accounts payable at the end of the year
• B)failure to review payroll expense or fringe benefits at year end
• C)failure to review accrued expenses at year end
• D)capitalization of expenses
• E)failure to review long term liabilities
• F)both A and D
• G)both B and D

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Definitions:

Time Certain

A specific, agreed-upon moment or period in which something is to occur or be completed, often used in contracts and scheduling.

Assumed Name

An assumed name, also known as a trade name or "doing business as" (DBA), is a name a business uses that is different from its legal, registered name.

Device

A piece of equipment designed for a particular purpose, often electronic in nature.

Demand Instrument

A financial document that requires the payment of money immediately or on demand.