Which of the Following Is TRUE

question 21

Multiple Choice

Which of the following is TRUE?

• A)Auditors give opinions as to whether financial statements have been prepared according to standard accounting practice.
• B)Auditors of a company's financial statements are from an outside accounting firm.
• C)Auditors owe a responsibility only to those individuals whom it is reasonably foreseeable would be investors in the company.
• D)Both A and B
• E)Both A and C

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Definitions:

Warehouse Receipt

A document that provides proof of ownership of commodities (e.g., goods or merchandise) stored in a warehouse.

Bill of Lading

A document issued by a carrier to acknowledge receipt of cargo for shipment.

Nonnegotiable

Refers to instruments or documents that cannot be transferred or endorsed to another party as payment or settlement.

Finder

An individual who locates something that was lost and may have certain legal rights or obligations regarding its care or return.