Which of the Following Statements Regarding Financial Statement Preparation Is

question 63

Multiple Choice

Which of the following statements regarding financial statement preparation is false?

• A)Financial statements can be prepared from information in the adjusted trial balance.
• B)The Sarbanes-Oxley Act requires that financial statements filed with the Securities and Exchange Commission include declarations by the CEO and CFO of the company.
• C)It makes sense to prepare the balance sheet first because it contains information needed on the income statement.
• D)When preparing financial statements an adjusted trial balance is easier to work with than the entire ledger.
• E)The income statement is prepared first.

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Definitions:

Subjective Values

Preferences or beliefs that are based on individual experiences, feelings, or opinions rather than objective measures.

Encoding Strategies

Methods or techniques used to enhance memory retention, such as chunking, mnemonic devices, and rehearsal.

Possible Selves

Self-schemas for whom one may be in the future; these include the ideal self and the ought self.

Promotion Focus

An orientation to actively pursue valued goals thought to arise when we compare our actual self to our ideal self.