Which of the Following Is a Term Used in Public

question 5

Multiple Choice

Which of the following is a term used in public company audit reports?

• A)Disclaimer of qualification.
• B)Explanatory paragraph.
• C)Other matter paragraph.
• D)Unmodified opinion.

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Definitions:

Profit Margin

A measure of profitability calculated as net income divided by revenue, or net profits divided by sales.

Interval Measure

Interval measure is a financial metric that assesses a company's ability to meet its current operational expenses by comparing its current assets to its current cash outflows.

Net Fixed Assets

These are a company's total fixed assets minus its accumulated depreciation, representing the actual value of the company’s fixed assets.

Average Daily Operating Costs

The average amount spent by a business on its day-to-day operational activities, divided by the number of days in the period.