Which of the Following Is a Disadvantage of Audit Services

question 49

Multiple Choice

Which of the following is a disadvantage of audit services (Table 4.3 in the text) ?

• A) data may not be representative;quality of data limited
• B) data is lacking in terms of content,quantity,and quality
• C) interviewer errors;respondent errors
• D) coverage may be incomplete;matching of data on the competitive activity may be difficult

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Definitions:

Rate of Return on Investment

A measure of the profitability of an investment, calculated as a percentage of the original investment.

Net Present Value

A financial metric used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows over a period of time.

Compound Interest

Interest earnings calculated on the base principal along with any interest that has previously accumulated from past periods on that principal.

Straight-Line Depreciation

A method of calculating the depreciation of an asset which spreads the cost evenly across the useful life of the asset.