Which of the Following Would Best Be Described as an Assurance

question 5

Multiple Choice

Which of the following would best be described as an assurance service?

• A) Preparing a report representing a client's position during an IRS audit.
• B) Working with a client to develop a more efficient method of processing financial transactions.
• C) Offering an opinion concerning the accuracy of statements made on a client's website relating to the client's online privacy policies.
• D) Assisting a client in identifying potential sources of capital for potential acquisitions.

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Definitions:

Opportunity Cost

The cost of missing out on the next best alternative when making a decision.

Total Output

The total quantity of goods or services produced by a firm or an economy in a specific period.

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than competitors.

Opportunity Cost

The cost of choosing one option over another, typically expressed as the value of the forgone alternative.