If the Balance Sheet of a Company Is Dated 30

question 50

Multiple Choice

If the balance sheet of a company is dated 30 June 2012, the audit report is dated 6 September 2012, and both are released to the public on 15 September 2012, this indicates that the auditor has searched for material unrecorded transactions and events that occurred up to:

• A) 6 September 2012.
• B) 30 June 2012.
• C) 15 September 2012.
• D) none of the above

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Definitions:

Pretax Income

Pretax income is the amount of income earned by a business before taxes have been deducted.

Fixed Costs

Costs that do not change with the level of production or sales volume, such as rent or salaries.

Variable Costs

Costs that vary in direct proportion to changes in the level of production or sales volume.

Sales

Transactions involving the exchange of goods or services for money, contributing to a company's revenue.