Which of the following is not a substantive test of details for dividends?
A)Calculation of the dividend payout ratio.
B)Examination of the minutes of the board of directors' meetings for authorization of the dividend per share amount.
C)Examination of the minutes of the board of directors' meetings for the dividend record date.
D)Agreement of the dividend amount with the payment in the cash disbursements journal.

Question

Quizplus · Accepted Answer

The calculation of the dividend payout ratio is an analytical procedure, not a substantive test of details for dividends. Substantive tests of details for dividends typically involve verifying the authorization, accuracy, and recording of dividend transactions, such as examining board minutes and agreeing dividend amounts with cash disbursements, rather than analyzing ratios.

Which of the Following Is Not a Substantive Test of Details