Auditing Is

question 36

Multiple Choice

Auditing is

• A) the examination of financial statements by a CA or CPA in order to provide an opinion on their accuracy.
• B) a part of accounting that involves only recording of economic events.
• C) an area of accounting that involves such activities as cost accounting, budgeting, and accounting information systems.
• D) conducted by the Securities and Exchange Commission to ensure that registered financial statements are presented fairly.

---

Definitions:

Substitute Products

Goods or services that can be used in place of one another, where the increase in price of one leads to an increase in demand for the other.

Total Utility

The total amount of satisfaction derived from the consumption of a single product or a combination of products.

Marginal Utility

The additional satisfaction or benefit obtained from consuming one more unit of a good or service.

Consumer's Income

The total amount of income a person earns from work, investments, and other sources, influencing their purchasing power and demand for goods.