A Client Has Changed the Salvage Values of a Number

question 51

Multiple Choice

A client has changed the salvage values of a number of its fixed assets.The auditors believe that the salvage values are realistic.The appropriate report on the financial statements is:

• A)Standard unmodified.
• B)Unmodified with explanatory language as to consistency.
• C)Qualified for consistency.
• D)Disclaimer.

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Definitions:

Production Possibilities

A concept in economics that describes the various combinations of goods and services that can be produced in an economy given its available resources and technology.

Joint Consumption

The characteristic of a good or service that can be consumed by more than one person at the same time without reducing its availability to others.

Production Possibilities Curve

A graphical representation showing the maximum number of goods or services that can be produced with a fixed amount of resources.

Resources

Inputs or factors used in the production of goods and services, including labor, capital, land, and technology.