A review of Bearing's Year 2 records disclosed the following tax information: Wages-$18,000 Taxable interest and qualifying dividends-4,000 Schedule C trucking business net income-32,000 Rental (loss) from residential property-(35,000) Limited partnership (loss)-(5,000) Bearing actively participated in the rental property and was a limited partner in the partnership. Bearing had sufficient amounts at risk for the rental property and the partnership. What is Bearing's Year 2 adjusted gross income?

All of the information that is needed to prepare the budgeted statement of cash flows comes from the budgeted income statement

Indicate whether the statement is true or false

Madison Corporation has a few large accounts receivable that total $1,000,000. Nassau Corporation has a great number of small accounts receivable that also total $1,000,000. The importance of a misstatement in any one account is therefore greater for Madison than for Nassau. This is an example of the auditor's concept of

A. Materiality. B. Comparative analysis. C. Reasonable assurance. D. Audit risk.