In Large Companies, Review and Reconciliation Is Often Assigned to

question 28

Multiple Choice

In large companies, review and reconciliation is often assigned to

• A) shift supervisors.
• B) management.
• C) internal auditors.
• D) external auditors.

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Definitions:

Retained Earnings

The amount of net income left over for the business after it has paid out dividends to its shareholders.

Dividend Expense

Typically, this is a misnomer as dividends are not expensed but are distributions of earnings to shareholders from the retained earnings of a company.

Financial Statements

Reports generated by a business to showcase its financial performance, position, and cash flows, typically including the balance sheet, income statement, and statement of cash flows.