Which of the Following Is an Example of a Type

question 54

Multiple Choice

Which of the following is an example of a type of control that may be tested?

• A)Interest accrued on notes payable.
• B)Cash surrender value of life insurance classified as long-term asset.
• C)A spreadsheet used to create a pivot table for the summarization of accounts receivable.
• D)Reconciliations performed monthly on accounts.

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Definitions:

Capacity Utilization

The percentage of a firm or country's productive capacity that is being used at a given time.

Fixed Assets

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Percentage of Sales Approach

A forecasting method that estimates future financial outcomes based on a percentage relationship between sales growth and other financial accounts.

Financial Planning

The process of setting objectives, assessing assets and resources, estimating future financial needs, and making plans to achieve monetary goals.