Which of the Following Statements Regarding Financial Statement Preparation Is

question 63

Multiple Choice

Which of the following statements regarding financial statement preparation is false?

• A)Financial statements can be prepared from information in the adjusted trial balance.
• B)The Sarbanes-Oxley Act requires that financial statements filed with the Securities and Exchange Commission include declarations by the CEO and CFO of the company.
• C)It makes sense to prepare the balance sheet first because it contains information needed on the income statement.
• D)When preparing financial statements an adjusted trial balance is easier to work with than the entire ledger.
• E)The income statement is prepared first.

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Definitions:

Sale Probability

The likelihood or chance that a product or service will be purchased within a given timeframe.

Shirk

The act of avoiding or neglecting one's duties or responsibilities.

Moral Hazard

A situation where one party is more likely to take risks because they do not bear the full consequences of their actions, often seen in insurance and finance.

Let Themselves Go

A phrase describing individuals who have stopped maintaining their appearance or health.