Gains and Losses Are Not Considered in Audit Testing, as They

question 44

True/False

Gains and losses are not considered in audit testing, as they do not need to be disclosed.

---

Definitions:

Primarily Liable

A legal term describing the party who bears the main responsibility in the fulfillment of an obligation or the payment of a debt.

Artisan Lien

A legal right granted to craftsmen or laborers to retain possession of a client's property until payment is received for services rendered.

Entrusted

Pertains to the act of giving someone the responsibility to take care of something or to carry out a task or duty.

Subcontractor

An individual or business that signs a contract to perform part or all of the obligations of another's contract.