Which of the Following Would Not Be Included in a CPA's

question 34

Multiple Choice

Which of the following would not be included in a CPA's report based upon a review of the financial statements of a nonpublic entity?

• A) a statement that the review was in accordance with generally accepted auditing standards
• B) a statement that all information included in the financial statements is the representation of management
• C) a statement that the review primarily consists of analytical procedures and inquiries
• D) a statement that the accountant has conducted a review

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Definitions:

Owner's Capital

The amount of money and assets invested in a business by its owner, representing the owner's claim against the company's assets.

Operating Cycle

The operating cycle, also known as the cash conversion cycle, is the time it takes for a company to purchase inventory, sell products or services, and collect the cash from these transactions.

Receivables

Money owed to a company by its customers or other parties for goods or services delivered but not yet paid for.

Revenues

Revenues refer to the total income generated by a company from its normal business operations, such as the sale of goods or provision of services.