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Balance-related audit objectives are usually applied to the ending balance in income statement

accounts; transaction-related audit objectives are usually applied to transactions reflected in balance sheet
accounts.
A) True
B) False

1 Answer

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Final answer:

The statements about balance-related and transaction-related audit objectives are both false; these audit objectives are applied to balance sheet and income statement accounts, respectively. The true or false question about a balance scale on the moon is also false, but for different reasons - gravity on the moon is weaker, yet a balance will still level because the relative weights are maintained.

Step-by-step explanation:

The assertion that balance-related objectives are usually applied to the ending balance in income statement accounts is false. Similarly, the statement that transaction-related audit objectives are typically applied to transactions in balance sheet accounts is also false. Audit objectives relate to both balance and transaction verifications, but they are typically applied oppositely: balance-related audit objectives are mostly applied to balance sheet accounts, and transaction-related audit objectives are applied to transactions that affect income statement accounts.

Regarding the statement about the weight of a book and a 1-kg iron weight on a balance scale, the true or false question being posed is also false. While a book balanced by a 1-kg iron weight on Earth will still balance on the moon, the key point is that gravity on the moon's surface is not uniform as it is on Earth's surface. Rather, the moon's gravitational force is about 1/6th that of Earth's. However, the scale will still remain in balance because the gravitational force acts uniformly on both objects such that their relative weights remain the same, even though they are lighter than on Earth.

User Zacky Pickholz
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