A Review Engagement Provides ________ Assurance That the Financial Statements

question 51

Multiple Choice

A review engagement provides ________ assurance that the financial statements are fairly presented.

• A)conclusive
• B)reasonable or high
• C)no
• D)negative or limited

---

Definitions:

Liability

Economic responsibilities or liabilities an organization has to other parties, which require repayment over a period via the exchange of economic assets.

Equity

The value of an owner's interest in a property or business, calculated by subtracting liabilities from assets.

Debits

Entries on the left-hand side of an account that represent the increase in assets or expenses or a decrease in liabilities, equity, or income.

Credits

Accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts, recorded on the right side of a ledger.