The Primary Purpose of Vouching Is to Ensure That

question 34

Multiple Choice

The primary purpose of vouching is to ensure that

• A) the balances or transactions are not understated.
• B) sufficient information is disclosed in the notes to the financial statements.
• C) the balances or transactions are not overstated.
• D) all transactions have been recorded.

---

Definitions:

Deductive Arguments

A logical process where the conclusion is based on the concordance of multiple premises that are generally assumed to be true.

Valid

A term used in logic to describe an argument where if the premises are true, the conclusion must also be true.

Premises

Buildings and land owned or occupied by a person or company, often referred to in legal and business contexts.

Deductive Argument

A reasoning method where the outcome is derived from the agreement of several assumptions, which are usually considered accurate.