Under Which of the Following Circumstances Does an Accountant Become

question 42

Multiple Choice

Under which of the following circumstances does an accountant become associated with a financial report?

• A) The accountant works for the enterprise that issues the report.
• B) The accountant sits on the board of directors of the enterprise that issues the report.
• C) The enterprise indicates that the accountant audited or reviewed the information included in the report.
• D) The report does not mention that the accountant prepared or performed other services with respect to the information.

---

Definitions:

Accounts Receivable

Refers to the money owed to a company by its customers for goods or services already delivered but not yet paid for.

Accounts Payable

Liabilities of a business that are due to be paid to creditors within a short period of time, typically within a year.

Fixed Assets

Long-term tangible assets that a company uses in its operations and is not expected to consume or sell within a year.

Dividends

Payments made by a corporation to its shareholder members, distributing earnings.