The Term "Explanatory Paragraph" Was Replaced in the AICPA Auditing

question 47

Multiple Choice

The term "explanatory paragraph" was replaced in the AICPA auditing standards with

• A) going concern paragraph.
• B) emphasis-of-matter paragraph.
• C) departure from principles paragraph.
• D) consistency paragraph.

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Definitions:

Current Yield

A financial ratio that calculates the annual interest or dividends received from an investment as a percentage of the current market price.

Coupon

The face value percentage that represents the yearly interest payment on a bond.

Semiannually

Occurring or conducted twice a year; typically refers to payments, reports, or evaluations made every six months.

Quoted

Refers to the latest price at which a stock, commodity, or currency was traded, often seen on exchanges.