Substantive Tests of Transactions Focus on the Changes in the Beginning

question 14

True/False

Substantive tests of transactions focus on the changes in the beginning and ending of the year balances, particularly for the balance sheet.

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Definitions:

Unrealized Increase/Decrease

Refers to the increase or decrease in the value of an asset or investment that has not been sold.

Fair Value

An impartial estimate of the market value of an asset or liability, based on current market prices.

Available-for-Sale

A classification for financial assets that are not to be held to maturity or for trading purposes, allowing for changes in value to be recorded in other comprehensive income.

Unrealized Increase/Decrease

Unrealized increase/decrease refers to the changes in the value of investments that have not yet been sold and the gains or losses have not been 'realized' through a transaction.