Swift Ltd Has Disclosed the Fact That They Are Being

question 3

Multiple Choice

Swift Ltd has disclosed the fact that they are being sued for $3 million.Swift Ltd reported a profit for the year of $300 million and has total assets of $75 million.You conclude that disclosure of the litigation is adequate.What type of opinion should you express on the financial report of Swift Ltd?

• A)Disclaimer of opinion.
• B)Unmodified opinion with an Emphasis of Matter.
• C)Unmodified opinion.
• D)Qualified opinion or adverse opinion.

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Definitions:

Break-Even

The point where total costs equal total revenues, indicating no profit or loss.

Monthly Dollar Sales

The total value of all sales made within a month, expressed in dollars.

Variable Expenses

Costs that fluctuate with the level of output or sales, such as materials and labor.

Fixed Expenses

Fixed expenses are costs that do not fluctuate with changes in production level or sales volume, including lease payments and insurance.