Knowledge of an entity's financial reporting activities includes understanding such matters as the entity's:
A) acquisitions, mergers, and disposals of business activities.
B) revenue recognition practices.
C) debt structure
D) use of information technology.
E) products, services and markets.

Question

Quizplus · Accepted Answer

Understanding an entity's financial reporting activities specifically involves knowledge of its revenue recognition practices, as these directly impact how financial results are reported.

Knowledge of an Entity's Financial Reporting Activities Includes Understanding Such