The Following Pre-Closing Accounts and Balances Were Drawn from the Records

question 6

Multiple Choice

The following pre-closing accounts and balances were drawn from the records of Carolina Company on December 31,Year 1:

-What is the amount of total assets that will be reported on the balance sheet as of December 31,Year 1?

• A)$12,600
• B)$13,800
• C)$7,200
• D)$10,600

---

Definitions:

Audit Working Papers

Documentation prepared by auditors during an audit, which records the procedures performed, tests conducted, information obtained, and conclusions reached.

Engagement Letters

Written agreements that outline the services to be provided by a professional firm to a client, including terms and conditions.

IRS Rulings

Official interpretations and decisions made by the Internal Revenue Service regarding federal tax laws, providing guidance to taxpayers.

Accountant-client Confidentiality

This is a principle that ensures the information shared between an accountant and their client remains private and is not disclosed to unauthorized individuals.