Which of the Following Is Least Likely to Require Significant

question 12

Multiple Choice

Which of the following is least likely to require significant auditor judgment about the dollar amount to be disclosed in the financial statement?

• A) Contingent liability related to pending litigation.
• B) Assumptions made in preparation of the estimate of income tax expense for the year.
• C) The value of inventory.
• D) Cash on hand at the end of the year.

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Definitions:

Upstream Price Discrimination

The practice of varying prices for goods or services at an earlier stage in the supply chain based on different buyers' willingness to pay.

Arbitrage

The practice of buying and selling the same asset in different markets to profit from price differences.

Vertical Integration

A company's expansion into different stages of production or distribution within the same industry, controlling more of its supply chain.

Upstream Price Discrimination

Differential pricing strategy employed before the product reaches the final consumer, often involving wholesalers or distributors.