If Audited Financial Statements Include a Balance Sheet and an Income

question 24

Multiple Choice

If audited financial statements include a balance sheet and an income statement,but do not include a statement of cash flows:

• A)The auditors may still issue an unmodified opinion.
• B)The auditors should issue a qualified report for the departure from generally accepted accounting principles.
• C)The auditors should issue a qualified report indicating a scope limitation in that no statement of cash flows is presented.
• D)The auditors should disclaim an opinion on the overall financial statements.

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Definitions:

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials.

Boiling Point

The temperature at which a liquid's vapor pressure equals the external pressure surrounding it, causing the liquid to rapidly vaporize.

Kerosene Components

Kerosene components refer to the mixture of hydrocarbons derived from petroleum, used primarily as fuel in heating and aircraft engines.

Flammable Liquid

A liquid substance capable of catching fire and burning easily in the presence of an ignition source.