Under APES1 Entities That Will Always Be Reporting Entities and Are

question 2

Multiple Choice

Under APES1 entities that will always be reporting entities and are required to prepare general purpose financial reports include:

• A) family trusts
• B) local government
• C) stock exchange listed companies
• D) both B and C

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Definitions:

Fees Earned

Revenue from providing services.

Stockholders' Equity

The portion of the balance sheet that represents the capital received from investors in exchange for stock, plus retained earnings.

Assets

Resources owned or controlled by a business or individual that are expected to produce future economic benefits.

Liabilities

Liabilities represent the obligations or debts that a company owes to others, which must be settled through the transfer of economic benefits like cash or goods.