It Is Not Necessary to Prepare Formal Financial Statements If

question 20

True/False

It is not necessary to prepare formal financial statements if a worksheet has been prepared because financial position and net income are shown on the worksheet.

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Definitions:

General Accounting Procedures

The standardized methods and practices used by accountants to prepare, present, and report financial statements.

Accounting Practices

The systematic process of recording, reporting, and analyzing financial transactions of a business, according to established conventions, principles, and standards.

Financial Accounting Standards Board

An independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofit organizations in the United States.

Certified Public Accountants

Licensed professionals who offer financial services such as auditing, tax preparation, and financial planning, and must adhere to professional standards.