Which of the Following Led to the Need for Financial

question 18

Multiple Choice

Which of the following led to the need for financial statements to report to owners of a business?

• A)The abandonment of a barter economy
• B)The expansion of European businesses into Asia and Africa
• C)The absence of day-to-day involvement by owners
• D)The increased use by business owners of the cash basis of accounting

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Definitions:

Express Statements

Clearly articulated and directly communicated declarations or assertions.

Implied Warranty of Fitness

An assurance that a product will meet a buyer’s specified purpose when the seller knows the particular purpose for which the buyer will use the goods.

Survival Hike

An outdoor adventure aimed at testing or improving the skills necessary to survive in wilderness conditions.

Personal Injury

Physical or psychological harm to a person resulting from the negligence, recklessness, or intentional misconduct of another party.