Which of the Following Would an Accountant Not Need to Know

question 15

Multiple Choice

Which of the following would an accountant not need to know when conducting a compilation?

• A)The accounting principles and practices of the industry in which the entity operates.
• B)A general understanding of the nature of the entity's business transactions and the form of its accounting records.
• C)The accounting basis on which the financial statements are to be presented.
• D)The accountant would need to know all of the other items listed when conducting a compilation.

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Definitions:

Overtime

The amount of time someone works beyond the normal working hours, often resulting in additional pay.

Annual Salary

The total amount of money that an individual earns in one year from their job before taxes and deductions.

Gross Earnings

The total amount of income earned by an individual or generated by a business before any deductions like taxes or expenses are applied.

Production In Excess

The situation when the quantity of goods produced exceeds the demand or expected sales volume.