Analytical Procedures During Risk Assessment of a Going Concern _______

question 30

Multiple Choice

Analytical procedures during risk assessment of a going concern _______.

• A)May identify negative trends such as working capital deficiencies, adverse key financial ratios, and decreasing cash flow from operations
• B)May identify positive trends such as working capital deficiencies, adverse key financial ratios, and decreasing cash flow from operations
• C)May identify only external matters that have occurred such as loss of a key franchise, loss of a principal customer, or work stoppages due to natural disaster
• D)May identify internal matters that have occurred such as legal proceedings

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Definitions:

Cost-Oriented

A pricing strategy where the price of a product or service is determined by adding a profit margin to its production cost.

Profit-Oriented

Focused on achieving financial gain or maximizing profits as the primary goal of business operations.

Cost-Plus-Fixed-Fee Pricing

A pricing strategy where the selling price is determined by adding a fixed fee to the cost of the product or service, covering both the cost and a guaranteed profit margin.

Target Return

A specific profit objective set by a business, often used to guide pricing and investment strategies to meet financial goals.