If There Is Concern That a Company Might Not Continue

question 80

Multiple Choice

If there is concern that a company might not continue in existence,but the auditor has concluded that the financial statements are fairly presented,the opinion that will be issued is a(n) ________.

• A)disclaimer of opinion
• B)unqualified opinion
• C)adverse opinion
• D)qualified opinion

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Definitions:

Marginal Income Tax Rate

The rate at which the next dollar of taxable income would be taxed.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.

Exercise Price

The specified price at which the option holder can buy (in case of a call option) or sell (in case of a put option) the underlying asset.

Stock Option Plans

Programs that grant employees the option to purchase a company's stock at a predetermined price, often used as a form of compensation.