Which of the Following Is Not a Purpose of the Annual

question 74

Multiple Choice

Which of the following is not a purpose of the annual report?

• A)To inform external users about the company's operations during the year.
• B)To promote the company to investors in order to attract additional capital.
• C)To assemble the numbers to be used by the external auditor to prepare the company's income tax return.
• D)To provide the basis for reporting to the SEC on Form 10-K.

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Definitions:

Chapter 7

A provision under the U.S. Bankruptcy Code that deals with the process of liquidation, where an individual's or company's assets are sold to pay off creditors.

Trustee

An individual or organization appointed to manage and administer property or assets on behalf of others, usually within a trust.

Debtor's Estate

The collective assets and liabilities of a debtor that are subject to administration in a bankruptcy case.

Administration

In a legal context, it refers to the management and settlement of an estate of a deceased person by an appointed administrator.