Sam Jones Has Been the Controller of Downtown Tires for 25

question 33

Multiple Choice

Sam Jones has been the controller of Downtown Tires for 25 years.Ownership of the firm recently changed hands and the new owners are conducting an audit of the financial records.The audit has been unable to reproduce financial reports that were prepared by Sam.While there is no evidence of wrongdoing,the auditors are concerned that the discrepancies might contribute to poor decisions.Which of the following characteristics of useful information is absent in the situation described above?

• A)relevant
• B)reliable
• C)complete
• D)timely
• E)understandable
• F)verifiable
• G)accessible

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Definitions:

Resale Value

The estimated value at which an asset or property can be sold in the future, taking into account depreciation or appreciation.

Equipment

Equipment refers to the necessary items for a particular purpose, especially tools or devices needed for a specific task or activity.

Sum-Of-The-Years-Digits

A depreciation method that results in a more accelerated write-off of an asset than the straight-line method, basing calculations on the sum of the years of the asset’s life.

Resale Value

The expected market value or price at which an asset, such as a vehicle or property, can be sold again.