Some Account Balances, Such as Those for Foreign Currency Transactions

question 1

Multiple Choice

Some account balances, such as those for foreign currency transactions, are the results of complex calculations.The susceptibility to material misstatements in these types of accounts is defined as:

• A)detection risk.
• B)audit risk.
• C)sampling risk.
• D)inherent risk.

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Definitions:

Par Value

The nominal or face value of a bond, stock, or other financial instrument, representing the amount to be repaid at maturity.

Market Price

Market price is the current price at which an asset or service can be bought or sold in a competitive marketplace.

Stock Dividend

A form of dividend payment made by a company to its shareholders in the form of additional shares, rather than cash.

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, often used in legal documents.