Which of These Tests Would Be the Least Useful When

question 26

Multiple Choice

Which of these tests would be the least useful when using analytical procedures on expenses?

• A) comparing prior year amounts with current year amounts
• B) comparing current year amounts as a percentage of sales with prior year
• C) comparing relationships between related expenses
• D) comparing total expenses to the bank balance at balance date

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Definitions:

Certainty

The state of being free from doubt or ambiguity, often related to the clear understanding or predictability of an event or outcome.

Novation

The act of replacing an old obligation with a new one, substituting a new party for an original party in an agreement, with the consent of all parties involved.

Restitution

The act of restoring or compensating someone for loss, damage, or injury that has been incurred.

Repudiated Contract

This term refers to a contract that has been rejected or declared void by one of the parties involved, indicating they do not intend to fulfill their contractual obligations.