Which of the Following Accounts Would Appear on the Financial

question 142

Multiple Choice

Which of the following accounts would appear on the financial statements of ONLY a manufacturing firm?

• A) bonds payable
• B) materials inventory
• C) prepaid insurance
• D) retained earnings

---

Definitions:

Financial Reporting

The process of producing statements that disclose an organization's financial status to management, investors, and the government.

Semi-Strong Form

The semi-strong form is a level of market efficiency theory suggesting that asset prices reflect all publicly available information.

Mechanistic Hypothesis

The hypothesis that share prices respond mechanistically to changes in accounting numbers, ignoring the effects of accounting policies.

Capital Markets

Financial markets where long-term debt or equity-backed securities are bought and sold, assisting in raising capital.