Which of the Following Are Examples of Qualitative Considerations That

question 68

Multiple Choice

Which of the following are examples of qualitative considerations that may cause misstatements of quantitatively immaterial amounts to be considered material?

• A) the client's compliance with contractual requirements of operating or other agreements
• B) key ratios monitored by analysts or other key users of the financial statements
• C) both a and b
• D) none of the above

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Definitions:

Revenue

The consolidated income from the sale of goods or services that constitute the backbone of a company's operational efforts.

Revenue Account

A Revenue Account tracks the income generated from a company’s primary operations, such as sales of goods or provision of services.

Expenses

Costs incurred in the process of earning revenue, including operational, administrative, and sales costs.

Supplies

Items used in the operation of a business that are consumed or not durable over a long period, such as office materials or cleaning supplies.