Which One of the Following Items Would NOT Be of Concern

question 75

Multiple Choice

Which one of the following items would NOT be of concern to the auditor as a potential contingent liability? In each case, the event could generate a loss of $20 000.

• A) Loans receivable discounted
• B) Unused balances of outstanding letters of credit
• C) Income tax disputes
• D) Obsolete inventory

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Definitions:

Majoring

The process of specializing in a particular field or area of study within a broader educational program.

Graphical Device

A tool or mechanism used to create, design, or display data and information in a visual format.

Relative Frequency

The ratio of the number of times a particular value or event occurs to the total number of occurrences, used to estimate probabilities in samples.

Hours Worked

The total number of hours spent working by an individual or group in a specific period.