ExplanationChoice “a” is correct. An auditor’s responsibility is to express an opinion on financial statements based on an audit.
Which one of the following statement is correct about the concept of fixed costs?
Fixed Cost. Fixed costs refer to those costs that do not vary in total but the per unit cost allocated to each unit produced changes. This includes depreciation and salary of a production supervisor.
Which of the following statements is correct standard deviation?
Which of the following statements about the standard deviation are correct? The correct answer is D) I, II and III only.
Which of the following statements is correct concerning an auditor’s required communication?
Correct Answer: B Choice “b” is correct. The auditor should determine that those charged with governance are informed about the initial selection of and changes in significant accounting policies or their application.
What is negative assurance in accounting?
Negative assurance is a determination by an auditor that a particular set of facts is believed to be accurate since no contrary evidence has been found to dispute them. Negative assurance is normally used by auditors in situations where it is not possible to positively confirm the accuracy of financial reports.
Which of the following is an example of fixed or standing charges?
To ascertain the operating cost, costs may be defined as standing charges or fixed charges and the running charges. In case of transport industry, salary of driver is considered as standing charges but the cost of fuel is an example of running charges.
Which of the following statement is correct fixed cost vary with change in output?
a)Fixed costs vary with change in outputb)If we add total variable cost and total fixed cost we get the average costc)Marginal cost is the result of total cost divided by number of units producedd)Total cost is obtained by adding up the total fixed cost and the total variable costCorrect answer is option ‘D’.
Which one of the following statements is correct for a square?
It has all its sides of equal length. Its diagonals bisect each other at right angle. Its diagonals are equal to its sides.
