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:

Trichotillomania

A disorder in which people repeatedly pull out hair from their scalp, eyebrows, eyelashes, or other parts of their body. Also called hair-pulling disorder.

Serotonin Activity

The biochemical interaction or function of serotonin, a neurotransmitter important in regulating mood, anxiety, and other functions.

Developmental Psychopathology

The study of the growth and development of psychological disorders, with a focus on both normal and abnormal developmental processes.

Generalized Anxiety Disorder

A chronic condition characterized by excessive and persistent worrying about various aspects of life, often without a specific cause.