Which of the Following Statements Concerning the Identification of a Type

question 9

Multiple Choice

Which of the following statements concerning the identification of a Type A low-risk program is true?

• A) A Type A program can be considered low-risk if it has been audited as a major program in one of the last two years, and the current year had no reportable audit findings.
• B) A Type A program is low-risk if it was audited as a major program last year, whether or not there were any reportable audit findings.
• C) A Type A program is low-risk if there were no audit findings within the last two years.
• D) A Type A program can never be classified as low-risk.

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Definitions:

Units-Of-Output Method

A depreciation method where the expense amount is based on the units of production or use of the asset during the period.

Residual Value

Residual Value is the estimated value that an asset will realize upon its sale at the end of its useful life, crucial for calculating depreciation for assets.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life, used in calculating depreciation expenses.

Maintenance Costs

Expenses incurred to keep property, equipment, or software operational and in good working condition.