Roll-Forward Procedures Are Conducted to

question 13

Multiple Choice

Roll-forward procedures are conducted to

• A) update findings from the previous year's audit to the current year.
• B) update findings from an interim date to year end.
• C) adjust accounts at year end for prepayments.
• D) none of the above

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Definitions:

Common Stock

A form of corporate equity ownership, a type of security representing an ownership share in a corporation, giving holders voting rights and a share in the company's profits via dividends.

Retained Earnings Account

An equity account that represents the accumulated portion of net income that a company has decided to retain, rather than distribute among shareholders in the form of dividends.

Stock Dividend

A payment made in the form of additional shares rather than cash, distributed to shareholders from the company's existing stock.

Cash Dividends Payable

A liability account on a company’s balance sheet representing the amount of dividends declared by the board of directors but not yet paid out to shareholders.