Generally Accepted Government Auditing Standards (GAGAS) Apply to All of the Following

question 43

Multiple Choice

Generally accepted government auditing standards (GAGAS) apply to all of the following audits except:

• A) Financial statement audits of federal organizations.
• B) Financial audits of not-for-profit organizations not receiving or expending federal financial awards.
• C) Financial audits of governments receiving and expending federal grants.
• D) Performance audits of federal programs.

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Definitions:

ROE

Return On Equity, a measure of financial performance calculated by dividing net income by shareholders' equity, indicating how efficiently a company uses investments to generate earnings growth.

EPS

Earnings per share, a company's net profit divided by the number of its outstanding shares, indicating profitability.

EBIT

Earnings before interest and taxes, a measure of a company's profitability that excludes expense and income from interest and taxes.

DFL

Degree of Financial Leverage, a ratio that measures the sensitivity of a company's earnings per share to fluctuations in its operating income, based on its capital structure.