Which of the Following Represents the Standards Followed by CPAs

question 1

Multiple Choice

Which of the following represents the standards followed by CPAs providing a review of a client's financial statements?

• A)Statements on Standards for Accounting and Review Services.
• B)Statements on Auditing Standards.
• C)Statements on Standards for Consulting and Review Services..
• D)Statements on Accounting Principles.

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Definitions:

Reportable Segment

A component of a business that generates revenues and expenses related to the business’s operations, and whose financial results are regularly reviewed by the entity’s chief operating decision maker.

Minimum Revenue

The lowest amount of income considered acceptable or necessary for a company or project to stay viable.

Asset Test

A measure of the liquidity of a company by comparing its liquid assets to its current liabilities.

Reportable Segment

A distinguishable component of an enterprise engaging in operations from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the entity's chief operating decision maker.