Which of the Following Concepts Is Least Related to the Risk

question 78

Multiple Choice

Which of the following concepts is least related to the risk of material misstatement?

• A)Control risk.
• B)Detection risk.
• C)Inherent risk.
• D)Materiality.

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Definitions:

Profit Margin

Profit Margin is a financial metric that measures the percentage of revenue remaining after all expenses have been deducted from sales.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company’s profitability.

Net Sales

The net income from goods or services sold, after deducting returns, allowances, and discounts.

Accrual Basis

An accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash is exchanged.