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:

Temperament

Temperament refers to the innate aspects of an individual's personality, including their disposition and natural reactions to situations.

Regular Schedule

A consistent and predictable plan or timetable for activities or tasks.

Thomas and Chess

Psychologists known for their research in child development, particularly in temperament studies.

Social and Cultural Interactions

Exchanges between individuals or groups that are influenced by and contribute to the norms, values, and practices of a society or culture.