An Abnormal Fluctuation in Gross Profit Suggests the Need for Extended

question 73

Multiple Choice

An abnormal fluctuation in gross profit suggests the need for extended audit procedures for sales and inventories.This would most likely be identified in the audit risk assessment phase by utilizing:

• A)Tests of transactions and balances.
• B)An assessment of internal control.
• C)An audit time budget.
• D)Analytical procedures.

Identify different types of economic resources and capital.

Understand the role and characteristics of an entrepreneur.

Comprehend the rational behavior assumption in economics and its implications for decision-making.

Understand the basic purpose and utility of economic models.

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Definitions:

Sales Tax

A tax imposed by governments on the sale of goods and services, typically calculated as a percentage of the purchase price.

Price

The amount of money required to purchase a good or service, often determined by the interaction of supply and demand.

Quantity Tax

A tax that is levied on a per unit basis, meaning a specified amount is charged for each unit of a good or service sold.

Competitive Suppliers

Entities that compete in a market to offer goods or services, often leading to lower prices and higher quality.