Question

What four financial statements can be found in a​ firm's 10-K​ filing? What checks are there on the accuracy of these​ statements?

Every public company is required to produce quarterly and annual financial statements. Those statements​ are:  ​(Select all the choices that​ apply.)

A.The statement of financial position.

B. The income statement.

C. The statement of cash flows.

D. The statement of​ stockholders' equity.

E. The statement of​ stockholders' liabilities.

What checks are there on the accuracy of these​ statements?  ​(Select all the choices that​ apply.)

A. Public companies must use a common set of rules and standard format when they prepare their reports.

B. Corporations are required to hire a neutral​ party, known as an​ auditor, to check the annual financial​ statements, ensure that the statements are prepared according to GAAP and provide evidence to support the reliability of the information.

C. In addition to the​ auditor's role in reviewing the financial​ statements, the​ Sarbanes-Oxley Act requires both the CEO and the CFO to personally attest to the accuracy of the financial statements presented to shareholders and to sign a statement to that effect.

D. When an auditor is not​ available, a​ corporation's CFO or the CEO can certify that financial statements are prepared according to GAAP.

Answer 1

What four financial statements can be found in a​ firm's 10-K​ filing? What checks are there on the accuracy of these​ statements?

Those statements​ are:  ​

A.The statement of financial position.

B. The income statement.

C. The statement of cash flows.

D. The statement of​ stockholders' equity

What checks are there on the accuracy of these​ statements?

A. Public companies must use a common set of rules and standard format when they prepare their reports.

B. Corporations are required to hire a neutral​ party, known as an​ auditor, to check the annual financial​ statements, ensure that the statements are prepared according to GAAP and provide evidence to support the reliability of the information.

C. In addition to the​ auditor's role in reviewing the financial​ statements, the​ Sarbanes-Oxley Act requires both the CEO and the CFO to personally attest to the accuracy of the financial statements presented to shareholders and to sign a statement to that effect.