Which One of the Following Items Would NOT Be of Concern

question 92

Multiple Choice

Which one of the following items would NOT be of concern to the auditor as a potential contingent liability, assuming each event could generate a loss of $20 000?

• A) loans receivable discounted
• B) obsolete inventory
• C) unused balances of outstanding letters of credit
• D) income tax disputes

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Definitions:

Endothelium

The thin layer of cells lining the interior surface of blood vessels and lymphatic vessels, playing a key role in vascular function.

Valves

Structures in the heart and veins that maintain blood flow in one direction, preventing backflow.

Systemic Circulation

The part of the cardiovascular system that carries oxygenated blood away from the heart to the body, and returns deoxygenated blood back to the heart.

Right Ventricle

The chamber within the heart that is responsible for pumping oxygen-depleted blood to the lungs for oxygenation, located in the lower right portion of the heart.