Hamell Corporation Is Making a Presentation to a Perspective Investor

question 111

Multiple Choice

Hamell Corporation is making a presentation to a perspective investor.The presentation includes a projection showing that the company's sales will be between $25,000,000 and $27,000,000 within the next three years.Hamell believes the information will be better received if its CPA provides an attestation report on the projection.The CPA should ensure that proper disclosure is made to indicate that

• A) The $27,000,000 estimate is a best-case scenario.
• B) The range of the projection is appropriate given the circumstances.
• C) The range does not indicate a best- and worst-case scenario.
• D) Projections are limited in their information content due to uncontrollable changes in the business environment.

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Definitions:

Null Hypothesis

A statement or assumption that there is no relationship or effect in the population from which a sample was drawn, in statistical testing.

Research Hypothesis

A statement made by a researcher predicting a relationship between two variables in a study.

Differences

A term referring to the distinctions or disparities between two or more entities or values.

One-tailed Test

A statistical test that determines the direction of a relationship or difference, testing for either a positive or negative effect only.