CAS 200 Explains That the Purpose of the Financial Statement

question 27

Multiple Choice

CAS 200 explains that the purpose of the financial statement audit is to express an opinion on the financial statements.This opinion is an assessment of whether the financial statements are presented fairly using

• A)IFRS standards.
• B)an applicable financial reporting framework.
• C)management's assertions.
• D)rules of professional conduct.

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Definitions:

Variable Costs

Costs that change as output levels change.

Marginal Costs

The additional cost incurred in the production of one more unit of a good or service.

Fixed Costs

Costs that do not change with the amount of goods or services produced, such as rent, salaries, or insurance.

Accounting Profit

Profits as shown on a company’s financial statements. Accounting profit does not necessarily correspond to real or economic profit.