General Purpose Financial Statements Include Which of the Following Sets

question 92

Multiple Choice

General purpose financial statements include which of the following sets of statements?

• A)Balance statement, income statement, statement of long-term debt, cash flow statement
• B)Balance sheet, income statement, statement of shareholders' equity, cash flow statement
• C)Balance sheet, income statement, statement of shareholders' equity, statement of long-term debt
• D)Balance statement, income statement, statement of retained earnings, cash balance

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Definitions:

Material Fact

Information that is significant enough to influence a decision or the outcome of a legal case or transaction.

Unilateral Mistake

The result of an error by one party about a material fact, that is, one that is important in the context of a particular contract.

Genuine Assent

An agreement to enter into a contract that is not clouded by factors such as fraud, duress, or mistake, indicating true and voluntary agreement.

Misrepresentation

A false statement of fact made by one party to another party, which has the effect of inducing that party into a contract.