AU 60 - Assignment 5 - Understanding Financial Statements Questions and Correct Answers the Latest Update
3 views 0 purchase
Course
AU 60
Institution
AU 60
Which one of the following important pieces of risk management information is found in the
notes to the financial statement?
A. An accounting equation
B. A disclaimer of opinion
C. Changes in owner's equity
D. A summary of loss contingencies
D. A summary of loss contingencies
The classific...
TestTrackers: Unlock Your Exam Potential! | Quality Practice Materials | Boost Your Confidence Today!
AU 60 - Assignment 5 - Understanding
Financial Statements Questions and Correct
Answers the Latest Update
Which one of the following important pieces of risk management information is found in the
notes to the financial statement?
A. An accounting equation
B. A disclaimer of opinion
C. Changes in owner's equity
D. A summary of loss contingencies
✓ D. A summary of loss contingencies
The classification, analysis, and determination of the appropriate method of reporting the
effects of the bookkeeping records in an organization's financial statements.
✓ Accounting
A ____ is a document that quantitatively presents an organization's financial activities or
status. Such activities include sales, purchases, borrowings, repayments, and investments.
, TestTrackers: Unlock Your Exam Potential! | Quality Practice Materials | Boost Your Confidence Today!
The purpose of ____ is to communicate information about an organization's financial activities,
and the results of those activities, to individuals who need to make informed financial decisions
about the organization.
✓ Financial Statements
The primary purpose of financial statements is to:
A. Determine how much money an organization has on hand.
B. Communicate information about the organization's financial activities to individuals who
need to make informed financial decisions about the organization.
C. Determine which of the organization's activities and investments have been profitable.
D. Allow management to make plans regarding the organization's future.
✓ B. Communicate information about the organization's financial activities to individuals
who need to make informed financial decisions about the organization.
Which one of the following groups of financial statements, when considered together, would
best present an organization's financial condition?
A. The balance sheet and the statement of cash flow.
B. The balance sheet, the income statement, the statement of changes in shareholders' equity,
and the statement of cash flow.
C. The income statement and the statement of owners' equity.
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TestTrackers. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $14.49. You're not tied to anything after your purchase.
