Which One of the Following Has the Most Affect on the Reliability

question 94

Multiple Choice

Which one of the following has the most affect on the reliability of financial statements?

• A) The size of the client
• B) The industry of the client
• C) The client's internal control structure.
• D) The client's trend of earnings.

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Definitions:

Book Value

The value of an asset as it appears on a balance sheet, calculated as the cost of the asset minus any depreciation.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into use, reducing its book value on the balance sheet.

Disposed

Refers to the act of selling, transferring, or getting rid of an asset or property owned by an individual or company.

Gain

The increase in value of an asset or decrease in liabilities resulting in an increase in owners' equity, except those relating to contributions from owners.