Which of the Following Is an Auditor Most Likely to Confirm

question 20

Multiple Choice

Which of the following is an auditor most likely to confirm from the transfer agent and registrar?

• A)Total shares of stock issued.
• B)Restrictions on the payment of dividends.
• C)Total market value of outstanding shares of stock.
• D)Gains from sale of treasury stock.

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Definitions:

Annual Revenue

The total amount of money earned by a business over a year from its sales or services.

Economic Profits

Profits calculated by subtracting both explicit and implicit costs from total revenues.

Explicit Costs

The direct payment made to others in the course of running a business, such as wages, rent, and materials.

Implicit Costs

Implicit costs are the opportunity costs associated with a company's use of internal resources that could have been utilized elsewhere, not directly paid out in cash.