Which of the Following Is an Accurate Statement Regarding Assurance

question 48

Multiple Choice

Which of the following is an accurate statement regarding assurance services?

• A) Assurance services must be performed by a CPA.
• B) An attestation service is not a type of assurance service.
• C) Assurance services improve the quality of information for decision makers.
• D) Assurance services can only be performed on financial data.

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Definitions:

"As Is"

The term "as is" denotes a condition of sale in which the buyer accepts an item in its current state, with all faults and without warranty, implying the buyer cannot hold the seller responsible for any defects.

Excellent Mechanical Condition

Refers to a state where mechanical systems and components are functioning at their best with no need for repairs.

Merchantability

A warranty that goods sold will meet reasonable expectations of quality and functionality as implied in a sale.

Implied Warranty of Merchantability

A legal presumption that goods sold by a merchant are fit for the general purpose for which they are sold and meet the standards of quality and performance that are reasonable to expect.