Which of the Following Substantive Tests of Cash Account Balances

question 21

Multiple Choice

Which of the following substantive tests of cash account balances are always performed?

• A) Test cut-off of cash receipts, cash payments and transfers at year-end
• B) Confirm cash held by others
• C) Examine the client's bank reconciliations
• D) All of the above

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Definitions:

Disaffirm Contracts

The legal ability of one party, often a minor or someone not fully competent, to declare a contract void and release themselves from any contractual obligations.

Necessaries

Goods or services that are essential for maintaining a person's health, education, comfort, or welfare.

Reasonable Value

The fair or market value of a service or item, determined by considering what a willing buyer would pay and a willing seller would accept.

Parents Responsible

An obligation or duty of parents to take care of, make decisions for, and financially support their children.