The Financial Statements of Firms Generally Are Audited by

question 25

Multiple Choice

The financial statements of firms generally are audited by

• A)employees of the firm being audited.
• B)employees of private accounting firms.
• C)employees of the federal government.
• D)the board of directors of the corporation being audited.

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Definitions:

Freight

Goods transported in bulk by truck, train, ship, or airplane.

Net Proceeds

The amount of money received from a transaction after all costs and expenses have been paid.

Commission

A fee paid for services, usually a percentage of the total transaction, often used as a compensation method in sales and services industries.

Merchandise

Goods or products that are bought and sold in business.