Which of the Following Should Be Included in an Accountant's

question 36

Multiple Choice

Which of the following should be included in an accountant's standard report based upon the review of a nonpublic entity's financial statements?

• A) A statement that the review was performed in accordance with generally accepted review standards.
• B) A statement that a review consists principally of inquiries and analytical procedures.
• C) A statement that the accountant is independent with respect to the entity.
• D) A statement that a review is substantially greater in scope than a compilation.

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Definitions:

Direct Labor

The wages and associated costs for employees who are directly involved in the production of goods or services.

Factory Overhead

All indirect costs associated with manufacturing, including utilities, maintenance, and salaries of indirect labor, not directly tied to the production of goods.

Sales Dollars

The total revenue generated from the sale of goods or services before any expenses are subtracted.

Performance

The act of carrying out or accomplishing tasks, goals, or objectives, often measured against known standards or objectives.