This Question Is Related to Other Public Accounting Services and Reports.For

question 15

Short Answer

This question is related to other public accounting services and reports.For each statement,description,or phrase (1-5),indicate the related type of engagement or report (A-F).
A. Reviews of unaudited financial statements of a nonissuer.
B. Compilations of financial statements.
C. Reviews of unaudited interim financial statements of a public company.
D. Reports on financial statements prepared special purpose framework.
E. Reports on compliance with contractual agreements or regulatory requirements.
F. Reports on elements, accounts, or items of a financial statement.
___ 1. The information should conform to the accounting principles in ASC 270, "Interim Financial Reporting."
___ 2. In our opinion, the schedule of accounts receivable referred to above presents fairly, in all material respects.
___ 3. Limited to presenting in the form of financial statements information that is the representation of management.
___ 4. As described in Note 2, these financial statements were prepared on the cash receipts and disbursements basis of accounting.
___ 5. A reasonable basis for expressing limited assurance that there are no material modifications that should be made to the statements.

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Definitions:

Straight-Line Method

A depreciation method that allocates an equal portion of the initial cost of an asset to each accounting period over the asset's useful life.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life, considered in depreciation calculations.

Depreciation Expense

Distributing the cost of a material asset methodically across its productive life.

Units-Of-Activity

A depreciation method that allocates the cost of an asset over its useful life based on the number of units it produces or hours it is used.