Which of the Following Is Generally True About the Sufficiency

question 3

Multiple Choice

Which of the following is generally true about the sufficiency of audit evidence?

• A)The amount of evidence that is sufficient varies directly with the acceptable risk of material misstatement.
• B)The amount of evidence concerning a particular account varies inversely with the materiality of the account.
• C)The amount of evidence concerning a particular account varies inversely with the inherent risk of the account.
• D)When evidence is appropriate with respect to an account it is also sufficient.

Analyze the strategies for managing receivables and the implications on cash flow.

Understand the absolute value concept and compute the absolute value of real numbers.

Identify rational and integer numbers within sets.

Understand and apply the concept of the distance between numbers on the real number line.

---

Definitions:

Short-Term Payables

Liabilities owed by a company that are due within one year, often including accounts payable, wages, and taxes.

Gross Working Capital

The total amount of a company's current assets, which are assets likely to be converted into cash within one year.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the business.

Short-Term Debt

Financial obligations that are due for repayment within one year.