Evidence Is Generally Considered Appropriate When

question 64

Multiple Choice

Evidence is generally considered appropriate when

• A)it has the qualities of being relevant,objective,and free from known bias.
• B)there is enough of it to afford a reasonable basis for an opinion on financial statements.
• C)it has been obtained by random selection.
• D)it consists of written statements made by managers of the enterprise under audit.

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Definitions:

Marginal Cost

The funding necessary to manufacture an extra unit of a good or service.

Average Variable Cost

The total variable costs (costs that change with production volume) divided by the quantity of output produced.

Market Price

The going rate at which a product or service is available for buying or selling in a particular market.

Pure Competition

A market structure characterized by an extremely high level of competition, where no single buyer or seller has the power to influence prices or market conditions.