Which of the Following Explanations Might Satisfy an Auditor Who

question 11

Multiple Choice

Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account?

• A) Extraordinary repairs have lengthened the life of an asset.
• B) Prior years' depreciation charges were erroneously understated.
• C) A reserve for possible loss on retirement has been recorded.
• D) An asset has been recorded at its fair value.

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Definitions:

Theoretical

Based on or using the ideas and abstract principles underlying a subject, rather than its practical aspects.

Medical Animal Research

The use of animals in scientific studies aimed at understanding health and disease processes, as well as testing the safety and efficacy of medical treatments.

External Validity

The degree to which a study's findings can be applied to other contexts and different individuals.

Construct Validity

Construct validity is the extent to which a test measures what it claims to be measuring, reflecting the adequacy of the underlying theoretical model.