Which of the Following Substantive Tests of Payroll Transactions Does

question 25

Multiple Choice

Which of the following substantive tests of payroll transactions does not relate to the accuracy assertion?

• A) reconciling the accrued payroll balance to the amount in the payroll ledger for the corresponding balance
• B) testing the postings of totals in the payroll ledger to the general ledger
• C) testing the extensions of wage rates times the hours worked
• D) comparing the hours paid with the record of hours worked

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Definitions:

Assets

Economic resources or owned items of value, including cash, property, and investments, that an individual or company can utilize to cover liabilities.

Dividend Yield

The ratio of a company's annual dividend payments to its share price, indicating the earnings investors can expect from owning the stock.

Liabilities

Financial obligations or debts that a company owes to others, which must be repaid.

Closed-end Investment

An investment fund that has a fixed number of shares outstanding, typically traded on a stock exchange, unlike open-end funds that can issue unlimited shares.