Jones Retailing, a Nonpublic Entity, Has Asked Winters, CPA, to Compile

question 87

Multiple Choice

Jones Retailing, a nonpublic entity, has asked Winters, CPA, to compile financial statements that omit substantially all disclosures required by generally accepted accounting principles. Winters may compile such financial statements, provided the

• A) Reason for omitting the disclosures is explained in the engagement letter and acknowledged in the management representation letter.
• B) Financial statements are prepared on a comprehensive basis of accounting other than generally accepted accounting principles.
• C) Distribution of the financial statements is restricted to internal use only.
• D) Omission is not undertaken to mislead the users of the financial statements and is properly disclosed in the accountant's report.

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Definitions:

Gardner And Gardner

Researchers known for their pioneering work in teaching American Sign Language (ASL) to a chimpanzee named Washoe, contributing significantly to the study of animal language acquisition.

Communicate

The process of exchanging information or expressing ideas and feelings through verbal or nonverbal means.

Sign Language

A language that uses visual-manual modality to convey meaning, allowing deaf and hard of hearing individuals to communicate.

Skinnerian Reinforcement

A concept derived from B.F. Skinner's work, emphasizing the use of reinforcement to increase desirable behaviors by controlling the consequences of those behaviors.