The Purpose of the Financial Statement Audit Is for Users

question 60

Multiple Choice

The purpose of the financial statement audit is for users to be able to ascertain the __________ and __________ of the financial statements of an organisation.

• A)~ credibility;reliability
• B)trustworthiness;accuracy
• C)correctness;objectivity
• D)None of the options is correct.

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Definitions:

Accounts Receivable

Funds that clients owe to a company for products or services delivered on credit.

Gross Profit

The financial metric resulting from subtracting the cost of goods sold from net sales revenue.

Operating Expenses

Operating expenses are costs associated with the day-to-day functions of a business, excluding direct production costs but including things like rent, utilities, and staff wages.

Sales Revenue

The total amount of money generated from selling goods or services before any expenses are deducted.