Financial statements are business documents used to communicate information needed to make business decisions. True False...

Financial statements are business documents used to communicate information needed to make business decisions.

True

False

Certified Public Accountants are licensed professional accountants who serve the general public.

true

false

The debt ratio shows the proportion of assets financed with debt.

True

False

Solutions

Expert Solution

Ques 1:TRUE

FINANCIAL STATEMENTS INCLUDE:

a)income statement

b)balance sheet

c)notes to accounts

d)directors report

e)auditors report

the above statements provide the figures what company has accumulated in the past years also how have the operations been during the past years.All the number which can guide to make a good business decisions can be formed from these statements.

Ques 2:True

CPA's are licensed professional accountant who serve the general public rather the one particular company.they have to be independent of appearance and in mind so as to uphold the professionalism which they are known for as they have the responsibility that the accounts are prepared as per GAAP.

Ques 3:TRUE

The Debt Ratio shows the proportion of assets financed with debt and is calculated by dividing total liabilities by total assets. All companies have liabilities that need to be accounted for. Debt Ratio equation looks like Debt ratio = Total Liabilities / Total assets.Through the use of this equation WE determines the risk of a company .

ekkarill92 answered 1 year ago

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