Which of the Following Is Not an Example of a Substantive

question 6

Multiple Choice

Which of the following is not an example of a substantive test of cash payments transactions?

• A)Test the mathematical accuracy of the cash receipts ledger
• B)Test the account classifications of cash payments
• C)Account for the numerical sequence of cheques issued during a specified period
• D)Determine whether the signatures on paid cheques are authorised

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Definitions:

Expansion

A phase in the business cycle where economic activity is increasing, characterized by higher output, employment, and trade.

Time Period

A specific duration or interval of time, often used in the context of analysis, planning, or measurement within various fields including finance and economics.

Recession

A period of temporary economic decline during which trade and industrial activities are reduced, typically recognized by a fall in GDP in two consecutive quarters.

1937-1938

The period marking a recession within the Great Depression in the United States, often attributed to contractionary monetary and fiscal policies.