When Compiling the Financial Statements of a Private Company,an Accountant

question 24

Multiple Choice

When compiling the financial statements of a private company,an accountant should ________.

• A)review agreements with financial institutions for restrictions on cash balances
• B)study and understand the client's business
• C)enquire of key personnel concerning related parties and subsequent events
• D)perform ratio analyses of the financial data of comparable prior periods

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Definitions:

Cognitive Developments

Refers to the progression of thinking, problem-solving, and information processing abilities throughout a person's life.

Concrete External Traits

Observable physical characteristics or behaviors that do not involve abstract or internal qualities.

Self-concepts

Refers to an individual's perception or image of themselves, formed through experiences, feedback, and reflections.

External Rewards

Incentives provided by external sources, such as money, praise, or awards, which motivate individuals to perform certain behaviors.