The External General Purpose Financial Statements/reports Include Which of the Following

question 98

Multiple Choice

The external general purpose financial statements/reports include which of the following: aged accounts payable report, aged accounts receivable report, balance sheet, income statement, inventory statement, statement of cash flows, statement of retained earnings

• A)All those listed
• B)All those listed except for the inventory statement
• C)Only balance sheet, income statement, statement of cash flows, and statement of retained earnings
• D)Only aged accounts payable report, balance sheet, income statement, statement of cash flows, and statement of retained earnings

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Definitions:

Business Entity Assumption

An accounting principle that treats a business as an entity separate from its owners, meaning its financial transactions are recorded distinctly from those of its owners or other businesses.

Economic Unit

An entity, such as an individual, household, or organization, considered in economic analysis and decision-making.

FASB

Financial Accounting Standards Board, an organization responsible for establishing accounting and financial reporting standards in the U.S.

Federal Statutes

Laws passed by the national government of a country that are applicable throughout the country.