When Compiling the Financial Statements of a Nonissuer, an Accountant

question 794

Multiple Choice

When compiling the financial statements of a nonissuer, an accountant should:

• A) Review agreements with financial institutions for restrictions on cash balances.
• B) Understand the accounting principles and practices of the entity's industry.
• C) Inquire of key personnel concerning related parties and subsequent events.
• D) Perform ratio analyses of the financial data of comparable prior periods.

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Definitions:

Mood Disorder

A psychological disorder characterized by the elevation or lowering of a person's mood, such as depression or bipolar disorder.

Somatoform Disorder

A mental disorder characterized by physical symptoms that have no identifiable physical cause, suggesting that they are the manifestation of psychological distress.

Phobic Disorder

A type of anxiety disorder characterized by an excessive and irrational fear of an object, place, or situation that poses little or no actual danger.

Panic Disorder

A psychiatric disorder characterized by sudden episodes of intense fear or panic, often with physical symptoms like rapid heartbeat.