As Part of Audit Planning,you Have Calculated Gross Margin for the Last

question 30

Multiple Choice

As part of audit planning,you have calculated gross margin for the last five years and compared gross margin to industry averages.Your client's gross margin has increased by about 5% in the current year,while the industry gross average has declined.One possible cause of this increased gross margin is

• A)higher cost of goods sold.
• B)increased bad debt expenses.
• C)premature revenue recognition.
• D)fictitious expenses.

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Definitions:

Sexual Orientation

An individual's pattern of emotional, romantic, or sexual attraction to others.

Independent Thinking

The ability to form opinions and make decisions based on one's own beliefs, knowledge, and judgment, rather than relying on external guidance or influences.

Mental Processes

The hidden, internal processes of our mind such as thought, emotion, and memory.

Behavior

The actions or reactions of an organism, usually in relation to the environment, which can be observed and measured.