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:

Repressed Memories

Memories involuntarily suppressed because they are linked to intense stress or trauma.

Hypnosis

A trance-like state of focused attention and heightened suggestibility, often used for therapeutic purposes.

Dissociation

A psychological experience in which a person feels disconnected from their thoughts, feelings, memories, or sense of identity, often in response to traumatic stress.

Repression

A defense mechanism where distressing thoughts, experiences, and memories are unconsciously excluded from conscious awareness.