Which of the Following Departures from GAAP Financial Statements Would

question 2

Multiple Choice

Which of the following departures from GAAP financial statements would receive an unqualified audit report?

• A)Accounting for a material capital lease as an operating lease.
• B)Use of an appropriate disclosed basis of accounting in accordance with legislation.
• C)Failing to consolidate a controlled subsidiary.
• D)Inventory written up to most recent quoted prices.

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Definitions:

Camera

A device used to capture images or videos, consisting of a lens and a body that records visual information on a medium or sensor.

Trespass to Chattels

A legal term referring to the intentional interference with someone else's personal property without permission.

Detinue

A legal action to recover possession of personal property wrongfully taken or retained.

Trespass to Land

The act of unlawfully entering, crossing, or remaining on someone's property without permission.