Jenny, an External Auditor from a Public Accounting Firm, Verified

question 1

Multiple Choice

Jenny, an external auditor from a public accounting firm, verified the financial statements of a real estate company. At the end of her review, Jenny did not find any discrepancies in the figures presented by the company or the accounting methods of the company. In this scenario, the independent auditor's report most likely offered a(n) _____.

• A) qualified opinion
• B) unqualified opinion
• C) adverse opinion
• D) concurring opinion

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Definitions:

Cash Payback Period

The expected period of time that will elapse between the date of a capital expenditure and the complete recovery in cash (or equivalent) of the amount invested.

Fixed Asset

A durable, physical asset that a company possesses and utilizes in its activities to produce revenue over an extended period.

Net Cash Flow

The difference between cash inflows and outflows within a specified period, indicating the company's liquidity.

Net Income

The net income of a company following the deduction of all taxes and expenses from the gross revenue.