Tests of Details of Balances Are Specific Audit Procedures That

question 55

Multiple Choice

Tests of details of balances are specific audit procedures that are intended to:

• A) test for monetary errors in the financial statements.
• B) prove that the accounts with material balances are classified correctly.
• C) prove that the trial balance is in balance.
• D) identify the details of the internal control system.

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Definitions:

Distribution

The process of delivering or spreading goods, services, or financial assets from a central point to multiple recipients or locations.

Limited Partnership

A partnership consisting of at least one general partner, who manages the business and is personally liable for debts, and one or more limited partners, who contribute capital and have limited liabilities.

Partnership's Liabilities

The financial obligations or debts that a partnership entity is responsible for.

RULPA

An acronym for the Revised Uniform Limited Partnership Act, which governs the operation of limited partnerships in the United States.