Which of the Following Best Describes the Independent Auditor's Approach

question 10

Multiple Choice

Which of the following best describes the independent auditor's approach to obtaining satisfaction concerning depreciation expense in the income statement?

• A)Verifying the mathematical accuracy of the amounts charged to income as a result of depreciation expense.
• B)Determining the method for computing depreciation expense and ascertaining that it is in accordance with generally accepted accounting principles.
• C)Reconciling the amount of depreciation expense to those amounts credited to accumulated depreciation accounts.
• D)Establishing the reasonableness of useful lives and depreciation methods for depreciable assets and recomputing the depreciation expense.

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Definitions:

Active Avoidance

A type of learning in which an individual learns to perform a behavior to prevent or avoid an unpleasant stimulus.

Aversive Event

An unpleasant or harmful event or stimulus that an individual seeks to avoid or minimize.

Passive Avoidance

A learning process in which animals learn to avoid an aversive stimulus based on previous negative experiences.

Agoraphobia

An anxiety disorder characterized by an intense fear of being in situations where escape might be difficult or help wouldn't be available if things go wrong.