Which of the Following Types of Association Requires That Accountants

question 12

Multiple Choice

Which of the following types of association requires that accountants provide a report with no explicit assurance?

• A)Compilations.
• B)Reviews.
• C)Financial statement preparation.
• D)Audits.

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Definitions:

Economic Profit

Revenue minus the opportunity cost of resources used; usually less than the accounting profit.

Accounting Profit

Revenue minus explicit cost.

Factors of Production

The resources used in the creation of goods and services, traditionally categorized into land, labor, capital, and entrepreneurship.

Opportunity Cost

The real cost of an item: what you must give up in order to get it.