The Audit Procedures Used to Verify Accrued Liabilities Differ from Those

question 92

Multiple Choice

The audit procedures used to verify accrued liabilities differ from those employed for the verification of accounts payable because:

• A)accrued liability balances are less material than accounts payable balances.
• B)accrued liabilities at year end will become accounts payable during the following year.
• C)evidence supporting accrued liabilities is non-existent, whereas evidence supporting accounts payable is readily available.
• D)accrued liabilities usually pertain to services of a continuing nature, whereas accounts payable are the result of completed transactions.

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Definitions:

Unconditional Acceptance

An agreement to the terms of an offer without any modifications or conditions.

Original Offer

The initial proposal or terms presented by one party to another during negotiations for a contract or agreement.

Terms

In a legal contract, terms are the specific details, conditions, and stipulations that are agreed upon by the parties involved.

Catalogue Price

The price of items as listed in a catalogue, often suggesting retail pricing before any discounts.