When a Client Has Significant and Nonrecurring Charges to Nonoperating

question 65

Multiple Choice

When a client has significant and nonrecurring charges to nonoperating expenses, which of the following would be the most appropriate materiality benchmark?

• A) Net profit.
• B) Income from continuing operations.
• C) Cash inflows.
• D) Cash outflows.

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Definitions:

Clarity and Logic

Refers to the clearness and rationality of thought or argument, ensuring that ideas are understandable and follow a coherent pattern.

Uncluttered

Describes a space or design that is clean, simple, and not filled with unnecessary items or features.

Coherent

Being logical and consistent, often referring to speech or writing that is well-organized and easy to understand.

Executive Forecast

Predictions or projections made by executives about future business conditions, performance, or market trends.