An examination of the balance in the accounts payable account is ordinarily not designed to
A) Determine that the amounts represent obligations of the company.
B) Verify that accounts payable were properly authorized.
C) Ascertain the reasonableness of recorded liabilities.
D) Determine that all existing liabilities at the balance sheet date have been recorded.

Question

Quizplus · Accepted Answer

The examination of the balance in the accounts payable account is primarily designed to verify that accounts payable were properly authorized, not to determine the existence or recording of liabilities. The other answer choices are also important objectives of the accounts payable examination, but B is the best answer because it directly relates to the verification of proper approval and authorization.

An Examination of the Balance in the Accounts Payable Account