Analytical Procedures That Provide Persuasive Evidence Include

question 39

Multiple Choice

Analytical procedures that provide persuasive evidence include:

• A)comparing the number of days purchases in trade payables with prior years.
• B)reviewing the cash accounts in the general ledger for unusual items.
• C)relating average amounts invested to an average interest rate.
• D)reviewing the property,plant and equipment account in the general ledger for unusual items.

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Definitions:

Derived Demand

The demand for a good or service that arises from the demand for another good or service, such as the demand for steel being derived from the demand for cars.

Productivity Of Labor

The measure of the output of goods and services produced by labor input, indicating the efficiency of labor use.

Demand For Labor

The need for employees by employers to carry out work, which varies with wage levels and economic conditions.

Inputs That Complement

Resources or goods that are used together in production to increase efficiency or output.