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:

Vertical Equity

A principle in taxation that suggests taxpayers with a greater ability to pay should contribute more in taxes.

Ronald Reagan

The 40th President of the United States, serving from 1981 to 1989, known for his economic policies known as "Reaganomics".

Marginal Tax Rate

The rate at which the last dollar of income is taxed, indicating the proportion of any additional dollar of income that will be taken as tax.

Lump-Sum Tax

A tax that is a fixed amount, not dependent on the taxpayer's income level or assets' value.