Which One of the Following Is Not an Example of a Red

question 54

Multiple Choice

Which one of the following is not an example of a red flag, used to evaluate earnings quality?

• A) Qualified audit report
• B) Net income this year is higher then net income last year
• C) Poor financial performance
• D) Frequent or unexplained changes in accounting policies

---

Definitions:

G₂

The phase in the cell cycle following DNA synthesis (S phase) and preceding cell division, involved in cell growth and the preparation for mitosis.

G₀

A phase of the cell cycle in which cells are in a state of dormancy and do not divide, showing no preparation for DNA synthesis or cell division.

DNA Replication

The process by which a cell duplicates its DNA, making two identical copies, before cell division.

Sister Chromatids

Identically replicated forms of a chromosome connected by a centromere, formed during cell division.