The Reports and Financial Statements Prepared by Accountants

question 87

Multiple Choice

The reports and financial statements prepared by accountants:

• A)are much more useful for profit-seeking businesses than for non-profit organizations.
• B)are mainly used to help the firm complete its tax forms.
• C)provide information that can be used by decision-makers both inside and outside the organization.
• D)have lost much of their relevance as firms have moved into a more global environment.

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Definitions:

Rate Of Return

The accrual or diminishment of value in an investment over a specific epoch, visualized as a percentage of the investment’s inaugural cost.

Savings Account

A deposit account held at a bank or other financial institution that provides principal security and a modest interest rate.

Annually

A term describing an event or calculation made once every year.

Discount Rate

The interest percentage utilized in calculating today's value of future cashflows.