The Reports and Financial Statements Prepared by Accountants

question 40

Multiple Choice

The reports and financial statements prepared by accountants

• A) are more useful for profit-seeking businesses than they are for not-for-profit organizations.
• B) are mainly used to help the firm complete its tax forms.
• C) provide information that can be used by decision makers both inside and outside the organization.
• D) are not as useful now that firms have moved into a more global environment.

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Definitions:

Trade Secrets

Confidential business information that provides an enterprise a competitive edge, such as formulas, practices, processes, designs, instruments, or patterns.

Intellectual Property

Creations of the mind, such as inventions, literary and artistic works, designs, and symbols, that are legally protected from unauthorized use by others.

Trade Secret

Any information that provides a business with a competitive advantage but isn’t shared openly.

Competitive Advantage

The attributes that allow an organization to outperform its competitors, such as superior products, processes, or technology.