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

Knowledge on how QuickBooks categorizes transactions on financial reports.

Ability to record customer payments and understand its impact on business accounts.

Understand the setup process for creating a new company data file in QuickBooks.

Know how to record sales transactions efficiently in QuickBooks.

---

Definitions:

Method Heading

The part of a method declaration in programming that includes the method name, return type, and parameters.

Char

A primitive data type in many programming languages that represents a single character.

Method Names

Names given to methods in programming, indicating the action or computation they perform.

Return Type

The type of data that a method sends back to the entity that called it.