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When an accountant compiles projected financial statements, the accountant's report should include a separate paragraph that:
a.Identifies the accounting principles used by management.
b.Describes the limitations on the projection's usefulness.
c.Describes the differences between a projection and a forecast.
d.Expresses limited assurance that the actual results may be within the projection's range.
【答案解析】B
Choice "b" is correct. The report on compiled projected financial statements should include a separate paragraph that describes the limitations on the usefulness of the presented statements.
Choice "c" is incorrect. The accountant's report on a compilation of a forecast or a projection does not describe the differences between them.
Choice "a" is incorrect. The report would not identify the accounting principles used by management.
Choice "d" is incorrect. A report on compiled projected financial statements does not express any assurance regarding the achievability of results.
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