The Accuracy of Information Included in Notes That Accompany the Audited

question 11

Multiple Choice

The accuracy of information included in notes that accompany the audited financial report of a company whose shares are traded on a stock exchange is the primary responsibility of:

• A) the independent auditor.
• B) the stock exchange officials.
• C) the Securities and Exchange Commission.
• D) the company's management.

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Definitions:

Surplus

An amount of something left over when requirements have been met; an excess of production or supply over demand.

Being In The Black

A financial term indicating a company or individual is making a profit or has a positive balance.

Deficit

A shortfall or deficiency, such as in a budget or in the amount of a required substance.

Being In The Red

A financial term indicating that a business or individual is operating at a loss or spending more money than is being earned.