Hamell Corporation Is Making a Presentation to a Perspective Investor

question 7

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 insure 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:

Protonephridia

A type of excretory and osmoregulatory system found in some invertebrates, consisting of a network of tubules ending in flame cells.

Nephridia

Excretory organs in many invertebrates, such as annelids, functioning similarly to kidneys in vertebrates by removing waste materials.

Flatworms

A group of invertebrates belonging to the phylum Platyhelminthes, known for their flat bodies and absence of body cavity.

Malpighian Tubules

Excretory structures found in some arthropods, including insects and spiders, that remove waste products from the blood and excrete them into the digestive tract.