Which of the Following Would Be Considered "The Nature of a Misstatement

question 138

Multiple Choice

Which of the following would be considered "the nature of a misstatement" that might make it material?

• A)Comparing the sum of known and projected misstatements to total current assets.
• B)Comparing the sum of known and projected misstatements to total current liabilities.
• C)Comparing the sum of known and projected misstatements to pretax income.
• D)Having the effect of changing a positive earnings trend to a negative earnings trend.

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Definitions:

Original Jurisdiction

The authority of a court to hear a case for the first time, as opposed to appellate jurisdiction.

Extended Warranty

is an additional warranty that provides continued coverage for repairs and maintenance beyond the original warranty.

Appellant

A party who appeals a lower court's decision, seeking a higher court's review.

Respondent

The party against whom a legal action is taken or who replies to a claim in a court process.