Which of the Following Conditions Is Indispensable in Using difference

question 49

Multiple Choice

Which of the following conditions is indispensable in using difference estimation?

• A) Audit values are known.
• B) Subsidiary records are not in agreement with control totals.
• C) Very few differences between the audit and book values are expected.
• D) Book values are known.
• E) Total population book value does not correspond to individual item book values.

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Definitions:

Return On Equity

A metric that gauges the effectiveness of a firm in utilizing investments to drive earnings growth, determined by dividing net income by shareholders' equity.

Earnings Per Share

A financial metric calculated by dividing the company's net income by the number of its outstanding shares, indicating the profitability of a company on a per-share basis.

Return On Total Assets

A profitability ratio that measures the net income generated from total assets during a period.

Earnings Per Share

A metric that calculates a company's profit divided by its number of outstanding shares of common stock.