If a Client Expensed the Acquisition Cost of Some Assets

question 63

Multiple Choice

If a client expensed the acquisition cost of some assets that should have been capitalized and depreciated them over their useful lives, which of the following would be incorrect?

• A) A qualified opinion would be appropriate.
• B) The opinion paragraph should be modified to include language such as: "except for the effects of not capitalizing the acquisition costs of some assets.."
• C) An explanatory paragraph should include the effects of the subject matter of the qualification, where practicable.
• D) An explanatory paragraph should be modified to include language such as: "subject to the qualified act.."

Understand the duties and responsibilities of principals and agents within an agency relationship.

Identify the different types of agency relationships and the conditions under which they are formed.

Recognize the legal consequences of actions taken by agents on behalf of principals.

Describe the rights and obligations of principals and agents regarding compensation and reimbursement.

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Definitions:

Phases

Distinct periods or stages in the development or process of something.

Supporting Evidence

Information or data that strengthens a claim or argument, making it more convincing.

Author's Case

An argument or position put forth by the writer.

Rhetorical Situation

The interactive combination of four elements: a specific author is using a specific mode of communication or presentation to engage a specific audience for the specific purpose.