The Amount of Time Spent Verifying Owners' Equity Is Frequently

question 67

Multiple Choice

The amount of time spent verifying owners' equity is frequently minimal for private companies because:

• A) the few owners all have access to the books so the auditor spends more time on accounts like liabilities, which affect outsiders.
• B) there are few if any transactions during the year for the owners' equity accounts, except for earnings and dividends.
• C) these companies are so small that it is not necessary to audit the capital section.
• D) there is no public interest in these companies.

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Definitions:

Management Skill

The ability to plan, organize, direct, and control individuals or groups of people to achieve specific goals.

Emotional Intelligence (EI)

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, and overcome challenges.

Muller and Turner

Refers to researchers or authors known for their contribution to the fields of project management or organizational studies.

IQ

Intelligence quotient (IQ) is a measure of a person's cognitive abilities and potential, compared to the average for their age group, usually determined through standardized testing.