Which of the following is an example of a type of control that may be tested?
A)Interest accrued on notes payable.
B)Cash surrender value of life insurance classified as long-term asset.
C)A spreadsheet used to create a pivot table for the summarization of accounts receivable.
D)Reconciliations performed monthly on accounts.

Question

Quizplus · Accepted Answer

Reconciliations performed monthly on accounts are a type of control that can be tested. This involves verifying that the accounting records match the actual transactions and balances in bank or other accounts. The other options listed are not controls that can be tested.

Which of the Following Is an Example of a Type