An Accountant Can Be Required to Bring His/her Working Papers

question 63

True/False

An accountant can be required to bring his/her working papers into court and to testify as to matters involving the client's tax records and discussions with the client regarding tax matters.

---

Definitions:

Equity Multiplier

A financial leverage ratio that measures the portion of a company’s assets that is financed by stockholders' equity.

Total Liabilities

The combined amount of a company's short-term and long-term debts, representing claims against the company's assets by outsiders.

Stockholders' Equity

The value remaining in a company after liabilities are subtracted from assets, representing what is owned by the shareholders.

Debt-to-Equity Ratio

This ratio demonstrates the balance between debt and equity shareholders' equity in financing a company's resources.