Use This Information to Answer the Following Question

question 146

Multiple Choice

Use this information to answer the following question. If the income statement were prepared in a multistep form,operating expenses would be

• A)$46,000.
• B)$16,000.
• C)$22,250.
• D)$40,000.

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Definitions:

GAAS

Stands for Generally Accepted Auditing Standards, which are the guidelines auditors follow to ensure their audits are conducted objectively and consistently.

Privity or Near-Privity Rule

A legal principle requiring a close, direct relationship between the parties involved in a contract for a third party to have the right to sue.

Third Party Liability

Legal responsibility that arises when a third party is held liable for damages or injury caused to another, often seen in insurance contexts.

Unaudited

Referring to financial statements or accounts that have not undergone formal examination and verification by an auditor.