1) Which of the given would auditors issue when there is history of important losses coupled with uncertain prospects?

i) A going concern qualification
ii) An adverse opinion
iii) A disclaimer of opinion
iv) An audit warning

2) Company bought $10,000 worth of equipment 1 year ago. Depreciation Expense for past year on equipment was= $2,000. Book value of this particular piece of equipment is equal to= $8,000 after its first year of use. Select one:

i) True
ii) False

3) A company which gets or merges with another company is now needed to account for that merger/acquisition using Fair Value Method. Select one:

i) True
ii) False