For Each of the Items Below,indicate Through the Appropriate Letter

question 57

Short Answer

For each of the items below,indicate through the appropriate letter the fundamental principle to which the item is most closely related.
A.Responsibilities principle
B.Performance principle
C.Reporting principle
1___.Maintaining professional skepticism.2___.An auditors' overall conclusion of the fairness of the client's financial statements.3___.The use of an audit plan to identify audit procedures to be performed during the engagement.4___.Auditors' assessment of the risk of material misstatement.5___.Accounting firm policies with respect to the level of expected continuing professional education.6___.Expressing an opinion in accordance with the auditor's findings.7___.Proper supervision of assistants on the audit.8___.Auditors' requests to obtain bank statements directly from financial institutions with whom the client does business.9___.An indication that an opinion cannot be expressed.10___.Determining and applying an appropriate materiality level.

Determine cash receipts from sales and cash payments for merchandise, operating expenses, and income taxes using the direct method.

Understand the presentation and reporting order of cash activities on the statement of cash flows.

Distinguish transactions that do not involve cash and how they are reported on the statement of cash flows.

Understand the indirect method for calculating net cash flow from operating activities, including adjustments to net income.

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Definitions:

Accounts

Financial records that track transactions related to a specific asset, liability, equity, revenue, or expense category.

Simple Journal Entry

A basic accounting entry used to record transactions with only one debit and one credit.

Debit

An accounting entry that increases asset or expense accounts or decreases liability, equity, or revenue accounts.

Credit

A financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest.