Which of the Following Statements Is True of a Company

question 32

Multiple Choice

Which of the following statements is true of a company that receives an opinion other than an unqualified opinion after an audit?

• A) It will find it difficult to obtain loans from banks.
• B) It will be able to sell its securities to the public quite easily.
• C) It must perform another audit to verify the original opinion.
• D) It will not be permitted to continue its business transactions.

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Definitions:

Significant Figures

The digits in a decimal number that carry meaning contributing to its precision, excluding all leading and trailing zeros.

Density

A physical property defined as the mass of a substance per unit volume, usually expressed in grams per cubic centimeter or kilograms per cubic meter.

Density

The mass per unit volume of a substance, indicating how much matter is packed into a particular space.