Which of the Following Is True

question 43

Multiple Choice

Which of the following is true?

• A) tests of details of balances focus on the ending balances for accounts in the client's ending trial balance
• B) tests of details of balances focus on the transactions during the period
• C) tests of details of balances focus on the auditor's understanding of internal controls
• D) tests of details of balances focus on comparisons of recorded amounts to expectations developed by the auditor

---

Definitions:

Better Technology

Improvements or advancements in technology that increase efficiency or productivity.

Concave Production Possibilities Curve

A graphical representation indicating increasing opportunity costs as more of one good is produced, resulting in a bowed-out shape.

Economic Resources

These are the assets, materials, and inputs used to produce goods and services, including labor, capital, and natural resources.

Opportunity Costs

The value of the foregone alternative when a decision is made; essentially, the cost of choosing one option over another.