Which of the following best describes why a firm produces financial statements?
A) to use as a tool when planning future investments within a firm
B) to increase the intrinsic value of a firm
C) to provide a means for interested outside parties such as creditors to obtain information about a firm, with an overview of the short- and long-term financial condition of a business
D) to show the daily activities a firm has undertaken in the previous financial year, and what activities are planned for the near future
Answer: C
You might also like to view...
The Allowance for Bad Debts account has a credit balance of $8000 before the adjusting entry for bad debts expense. After analyzing the accounts in the accounts receivable subsidiary ledger using the aging-of-receivables method, the company's management estimates that uncollectible accounts will be $15,000. What will be the balance of the Allowance for Bad Debts reported on the balance sheet?
A) $15,000 B) $7000 C) $23,000 D) $13,500
An organization's bond rating may cause the organization to hold larger levels of cash than are necessary for operations
Indicate whether the statement is true or false
A supervisor notices that an employee has been late to work for three days this week. What should the supervisor do to foster open communication?
a. Call the employee to ask him about the lateness. b. Write the employee a disciplinary memorandum about the lateness. c. Meet with the employee face to face to discuss the lateness. d. Send the employee an email message about his lateness.
Canesta Company has developed a virtual keyboard out of light to be used with cell phones and personal digital assistants (PDAs). The product beams an image of a keyboard on a desk, allowing the user to type on the image. The words are picked up by the user's digital device. When introduced to the market, the device will sell for less than $50. What level of distribution intensity should the company use?
A. exclusive B. controlled C. extensive D. reciprocal E. selective