With Respect to Clients,business Risk Increases When Conditions,events,circumstances,or Inactions

question 19

Multiple Choice

With respect to clients,business risk increases when conditions,events,circumstances,or inactions

• A)adversely affect the entity's ability to achieve its objectives.
• B)cause employees to not do their job properly.
• C)result in the company continuing profitable operations.
• D)result in an assessment of poor internal controls.

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Definitions:

Net Working Capital

A measure of a company's short-term liquidity, calculated as current assets minus current liabilities.

Turnover Rate

The rate at which a company hires and separates employees, or the rate at which inventory or assets are replaced through sales.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.

Use Of Cash

A summary of how a company's cash is being utilized in operations, investments, and financing activities.