Which of the Following Transactions Is an Auditor Most Likely

question 14

Multiple Choice

Which of the following transactions is an auditor most likely to examine when auditing the retained earnings account?

• A)Changing from one method of depreciation to another.
• B)Adjusting the percentage used to estimate the allowance for doubtful accounts.
• C)Changing from the FIFO to LIFO method of inventory valuation.
• D)Correcting an error in depreciation in a prior year.

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Definitions:

Reabsorption

The process by which substances are taken back into the bloodstream from bodily fluids or tissues.

Neurotransmitter Molecules

Chemical messengers that transmit signals across synapses from one neuron to another, influencing mental processes and behavior.

Reuptake

A process by which neurotransmitters released into the synaptic cleft are reabsorbed by the presynaptic neuron, helping to terminate the synaptic transmission.

Action Potential

A temporary reversal of the electrical polarization of the membrane of a nerve cell or muscle cell, allowing for the transmission of signals.