For a Publicly Held Company, Indicate Which of the Following

question 49

Multiple Choice

For a publicly held company, indicate which of the following activities are likely to occur at or shortly after year-end. (More than one answer may be correct.)

• A) Preparing of income tax returns.
• B) Adjusting and closing the accounts.
• C) Drafting disclosures that accompany financial statements.
• D) An audit of the financial statements by a firm of CPAs.

---

Definitions:

Expected Return

The anticipated average return on an investment over a specific period based on historical data and market analysis.

Exclusion Ratio

In annuities, the proportion of payments considered as a return of the original investment and therefore not subject to income tax.

Life Annuity

A financial product that provides a guaranteed income for the remainder of the annuitant's life in exchange for an initial payment.

Annuity Payments

Periodic payments made to an individual, typically during retirement, derived from an annuity investment.