When Auditing Expense Accounts,which of the Following Would the Auditor

question 51

Multiple Choice

When auditing expense accounts,which of the following would the auditor be least likely to subject to a detailed test of transactions?

• A)legal expense
• B)utilities expense
• C)repairs and maintenance expense
• D)travel expense

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Definitions:

Cash Dividends

Payments made by a company out of its profits to its shareholders in the form of cash.

Comparative Balance Sheet

A financial statement that presents a company's assets, liabilities, and shareholders' equity at two different points in time to analyze financial health and trends.

Net Income

The company's final financial gain once every expense, tax, and cost is subtracted from the gross income.

Operating Activities

Financial transactions and events related to the core business operations of a company.