Management's Responsibilities for the Financial Statements Do Not Include Which

question 69

Multiple Choice

Management's responsibilities for the financial statements do not include which of the following?

• A) selecting and applying appropriate accounting policies
• B) expressing an opinion on the financial statements
• C) establishing and maintaining internal controls
• D) making reasonable accounting estimates

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Definitions:

Financial Accounting

The field of accounting focused on the summary, analysis, and reporting of financial transactions related to a business.

Managerial Accounting

This is a form of accounting that creates financial reports specifically designed to inform the internal decision-making processes of business managers.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Payroll Scheme

A system or plan for managing the process of paying employees, including calculating wages, withholding taxes, and distributing paychecks.