Question

Which of the following is not a test primarily used to test property, plant and equipment accounts for overstatement?

1) Test of impairment
2) Test of depreciation
3) Test of valuation
4) Test of completeness

Answer 1

The test of completeness is not a test primarily used to test property, plant, and equipment accounts for overstatement.

Step-by-step explanation:

The correct answer is 4) Test of completeness. The test of completeness is used to ensure that all property, plant, and equipment accounts are included in the financial statements and there is no understatement. On the other hand, tests of impairment, depreciation, and valuation are used to check for overstatement.