Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account? Prior years' depreciation charges were erroneously understated. A reserve for possible loss on retirement has been recorded. Plant assets were retired during the year under audit. An asset has been recorded at its fair value. om is sitting in his auditing class at a local state university, listening to the professor deliver a lecture on auditing a client's investing ctivities. At the end of the lecture, Tom approaches the professor and asks for clarification on what activities would be included in ivesting activities. Which of the following would be the correct response from the professor? A firm's investing activities typically include interest paid on loans taken out to purchase fixed assets. A firm's investing activities typically include the proceeds received from retirement of fixed assets as well as cash disbursements for interest expenses. A furm's investing activities typically include purchasing and selling of fixed assets such as equipment. A firm's investing activities typically include the sale of financial instruments held for trading purposes. Which of the following explanations might satisfy an auditor who discovers significant debits to an accumulated depreciation account? Prior years' depreciation charges were erroneously understated. A reserve for possible loss on retirement has been recorded. Plant assets were retired during the year under audit. An asset has been recorded at its fair value. om is sitting in his auditing class at a local state university, listening to the professor deliver a lecture on auditing a client's investing ctivities. At the end of the lecture, Tom approaches the professor and asks for clarification on what activities would be included in ivesting activities. Which of the following would be the correct response from the professor? A firm's investing activities typically include interest paid on loans taken out to purchase fixed assets. A firm's investing activities typically include the proceeds received from retirement of fixed assets as well as cash disbursements for interest expenses. A furm's investing activities typically include purchasing and selling of fixed assets such as equipment. A firm's investing activities typically include the sale of financial instruments held for trading purposes