What Is an Examination of the Financial Statements of a Business

question 41

Multiple Choice

What is an examination of the financial statements of a business to ensure that they conform with international financial reporting standards called?

• A) A verification.
• B) A certification.
• C) An audit.
• D) A validation.

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Definitions:

Comprehensive Income

Represents the total change in equity for a business enterprise during a period from transactions and other events from non-owner sources.

Unrealized Loss

A loss that results from holding onto an asset that has decreased in value, but has not actually been sold yet.

Available-For-Sale Securities

Financial assets that are purchased with the intent to sell before their maturity date, and not held to maturity or traded actively.

Net Income

Represents the earnings of a company after all expenses and taxes have been deducted from total revenue, indicating the company's profitability.