Which of the Following Statements Is Not True Concerning Assurance

question 16

Multiple Choice

Which of the following statements is not true concerning assurance services?

• A)The growth in assurance services has been driven by users' demands for those services.
• B)Assurance services focus on improving the quality of information or its context, for decision makers.
• C)Unlike audit and attestation engagements, an engagement to perform assurance services does not require the CPA to consider information reliability.
• D)Auditing and attestation services can be viewed as subsets of assurance services since there is overlap in their objectives.

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Definitions:

Operating Lease

A leasing agreement allowing the lessee to use an asset temporarily without transferring the risks and rewards of ownership.

Sales-Type Lease

A leasing arrangement where the lessor recognizes immediate profit on the leased asset as in a sale, based on the difference between the fair value of the leased asset and its cost or carrying amount.

Direct-Financing Lease

A lease agreement where the lessor effectively finances the asset for the lessee, recognizing interest revenue over the lease term.

Credit-Approved Customers

Individuals or entities that have been evaluated and deemed creditworthy by a lender, allowing them to receive goods or services in advance of payment.