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.."

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Definitions:

Mode

The value that occurs most frequently in a given set of data, used as a measure of central tendency.

Set Of Colors

A specific collection or arrangement of colors, often used to represent different data points, categories, or variables in visual representations.

Median

The middle value in a data set when the values are arranged in ascending or descending order.

Squared Deviation

Squared deviation refers to the squared differences between each data point in a dataset and the mean of that dataset.