The Most Important Disclosure by a Corporation Is Its Financial

question 22

Multiple Choice

The most important disclosure by a corporation is its financial statements. To assist in the analysis and evaluation of the annual financial statement the statutes provide for the appointment by the shareholders of

• A) an official examiner.
• B) an independent auditor.
• C) an association inspector.
• D) a financial director.
• E) an external treasurer.

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Definitions:

Accrued Liabilities

Financial obligations that a company has incurred during a period but has not yet paid by the end of that period.

Accounts Payable

A liability account that records amounts a company owes to suppliers for goods and services purchased on credit.

Statement Of Cash Flows

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financing activities.

Accounts Receivable

Money owed to a business by its customers for products or services delivered on credit.