Which of the Following Is an Example of a Financial

question 15

Multiple Choice

Which of the following is an example of a financial audit?

• A) An audit of financial statements to determine if they are presented fairly in accordance with generally accepted accounting principles.
• B) An audit to determine whether the objectives of a new program are suitable and relevant and whether the entity has complied with laws and regulations that may have a material effect on the financial statements.
• C) An audit of the financial report on the Noxious Weed Special Revenue Fund to determine whether the entity has complied with specific finance-related requirements.
• D) An audit to determine whether an entity is acquiring its resources economically and efficiently.

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Definitions:

Property Tax

A tax assessed on real estate by the local government, based on the property's value.

Elastic

Refers to the responsiveness of the quantity demanded or supplied of a good or service to a change in its price.

Excess Burden

The cost to society created by market inefficiency, which occurs when supply and demand are out of equilibrium.

Tax Revenue

The income that is collected by the government through various forms of taxation.