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The PCAOB Makes It Clear That the CEO and CFO

question 11

True/False

The PCAOB makes it clear that the CEO and CFO are responsible for the internal control over financial reporting and the preparation of the statements.


Definitions:

FIFO

An accounting method where the first items placed in inventory are the first sold or used.

Inventories

Quantities of goods in stock that are held by a business for the purpose of sale or production.

Retrospective Adjustment

An accounting practice where prior period financial statements are adjusted to reflect changes in accounting policies or correction of errors as if the new policy had always been applied.

Financial Statements

Reports that provide an overview of a company's financial condition, performance, and cash flows.

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