Initial Substantive Procedures for Cash Balance Assertions May Include All

question 9

Multiple Choice

Initial substantive procedures for cash balance assertions may include all of the following except

• A) trace opening balances for cash on hand and in bank to the previous year's working papers.
• B) review activity in general ledger accounts for cash and investigate entries that appear unusual in amount or source.
• C) obtain entity-prepared summaries of cash on hand and in bank, verify mathematical accuracy and determine agreement with general ledger.
• D) All of the above are initial substantive procedures for cash balance assertions.

---

Definitions:

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating how much money each share makes.

Periodic Basis

An accounting method where transactions are recorded and financial statements are prepared at regular, specific intervals, such as monthly, quarterly, or annually.

Bondholders

Individuals or institutions that hold the debt securities issued by corporations or governments, entitled to receive interest payments and the principal repayment.

Premium Amortization

The gradual reduction of the premium paid above the par value of a bond, allocated over the bond's life.