Dual Purpose Tests Examine Both Controls and the Reasonableness of Dollar

question 98

True/False

Dual purpose tests examine both controls and the reasonableness of dollar amounts.A good example is testing a sample of purchase transactions that occurred throughout the year.

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Definitions:

Accounts Receivable Turnover

This is a financial ratio that measures how effectively a company collects debts from its credit customers, indicating the number of times average accounts receivable are collected during a period.

Sales In Receivables

Accounts receivable that result from sales transactions, indicating the amount of money customers owe a company.

Decimal Place

A position of a number to the right of the decimal point, indicating fractions of a base unit.

Percentages

A mathematical concept that represents a number or ratio as a fraction of 100.