A CPA Wishes to Determine How Various Publicly-Held Companies Have

question 991

Multiple Choice

A CPA wishes to determine how various publicly-held companies have complied with the disclosure requirements in a Statement of Financial Accounting Standards. Which of the following information sources would the CPA most likely consult for this information?

• A) AICPA Accounting Trends & Techniques.
• B) FASB Technical Bulletins.
• C) AICPA Audit and Accounting Manual.
• D) FASB Statements of Financial Accounting Concepts.

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Definitions:

Comprehensive Income

A measure of all changes in equity during a period except those resulting from investments by and distributions to owners.

Parent Company

A parent company is a corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Subsidiary Company

A company that is completely or partly owned and wholly controlled by another company, referred to as the parent company.

Inventory

An accounting term for goods and materials held by a company in stock with the intention of selling them or transforming them in the production process.