Which of the Following Is Correct with Regard to Private

question 111

Multiple Choice

Which of the following is correct with regard to private accountants?

• A) They are hired by business firms who do not want to use the services of CPAs.
• B) They are employed by business firms in areas such as marketing research, law, and production technology.
• C) They are becoming less common as CPAs become more prominent and skilled.
• D) They are almost exclusively found at the head office of business firms.
• E) They are hired to deal with companies' day-to-day accounting needs.

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Definitions:

Other Comprehensive Income

Other Comprehensive Income includes revenues, expenses, gains, and losses that are not included in net income but affect equity, such as unrealized gains on securities.

Shareholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing the owners' claim on the company's assets.

Account Balances

The amount of money in a financial repository, such as a bank account, at any given time.

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends, to be reinvested in the business or used to pay off debt.