For a CPA Working as a Sole Practitioner or Working

question 54

Multiple Choice

For a CPA working as a sole practitioner or working in a small public accounting office,the provincial practice inspectors will likely come to review audit files

• A)every three years.
• B)every five years.
• C)every year.
• D)never: files are not reviewed in person.

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Definitions:

Fixed Costs

Costs that do not vary with the level of output or production, such as rent or salaries.

Profit

The financial gain obtained when the revenue generated from business activities exceeds the expenses, costs, and taxes involved in sustaining the activity.

Variable Costs

Costs that vary directly with the level of production or output, including items such as raw materials and direct labor expenses.

Total Revenue

The total amount of money a company receives from its goods or services over a specific time period, calculated by multiplying price by quantity sold.