The Basic fiNancial Statements Prepared for External Users Do Not

question 76

Multiple Choice

The basic financial statements prepared for external users do not include which of the following?

• A) The statement of financial position.
• B) The income statement.
• C) The revenue statement.
• D) The statement of cash flows.

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Definitions:

Segregation Of Duties

A fundamental control principle that ensures critical tasks are divided among different individuals to prevent fraud and errors.

Physical Controls

Security measures implemented to safeguard tangible assets, such as locks, surveillance cameras, and secure storage facilities.

Documentation Procedures

The processes used for documenting a company's financial transactions, activities, and controls to ensure accuracy and reliability of financial records.

Documentation Procedures

The systematic process of organizing, managing, and maintaining records and documents for business operations.