An Emphasis of a Matter May Result in Which of the Following

question 41

Multiple Choice

An emphasis of a matter may result in which of the following?

• A)A disclaimer of an audit opinion.
• B)A qualified audit opinion.
• C)An adverse opinion.
• D)An unqualified audit opinion with an explanatory paragraph.

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Definitions:

Gross Profit Method

An accounting technique used to estimate the cost of goods sold and ending inventory by applying a gross profit margin to net sales.

Perpetual Inventory System

An accounting method that records inventory transactions in real-time, providing a continuously updated inventory balance.

Inventory Destroyed

This term describes inventory items that have been lost, damaged beyond repair, or otherwise rendered unusable and must be written off from the business's accounts.

Retail Inventory Method

An accounting technique used by retailers to estimate inventory levels based on the cost to retail price ratio.