A Client That Has a Departure from Generally Accepted Accounting

question 81

True/False

A client that has a departure from generally accepted accounting standards that is immaterial will receive a qualified or adverse opinion.

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Definitions:

Power Factor

A comparison of the true power (watts) to the apparent power (volt-amperes) in an AC circuit.

Inductive Reactance

The opposition that inductors present to the flow of alternating current, due to the phase shift between voltage and current, measured in ohms.

Coil

An electrical component made by winding conducting wire around a core or forming it into a loop or series of loops, often used in inductors and transformers.

Reactance

The opposition a circuit element offers to the flow of alternating current, due to its capacitance or inductance, affecting the phase between voltage and current.