Which of the Following Is an Accurate Statement About the Accounting

question 4

Multiple Choice

Which of the following is an accurate statement about the accounting profession?

• A)Recent audit failures have increased the public reputation of the accounting profession.
• B)Public scrutiny of the profession prompts auditors to become more careful and efficient in their fundamental tasks.
• C)The value of clear and accurate financial disclosure is less important in the current business environment.
• D)The auditor's responsibility to management to provide financial information consistent with accounting regulations has never been more important.

---

Definitions:

General Ledger

A comprehensive record of all financial transactions, organized by account, used to compile financial statements.

Control Accounts

General ledger accounts that summarize the details of transactions recorded in subsidiary ledgers.

Cash Purchase

A transaction where goods or services are bought and paid for with physical currency at the time of purchase.

Inventory

Inventory encompasses the raw materials, work-in-progress goods, and the finished products that a company holds with the intention of selling them to earn revenue.