Which of the following is not true regarding the testing of transactions in the stockholders' equity accounts?
A)The transactions are typically tested on a 100% basis.
B)The transactions are typically tested on a sampling basis.
C)The number of transactions is typically small.
D)Most of these transactions are highly material.

Question

Quizplus · Accepted Answer

Transactions in the stockholders' equity accounts are typically tested on a 100% basis rather than a sampling basis. These transactions may be small in number, but they can still be highly material and significant for the overall financial statements.

Which of the Following Is Not True Regarding the Testing