The primary objective of external auditors is to provide assurance to stockholders and other users that the statements are fairly presented
a. True
b. False
Indicate whether the statement is true or false
True
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Creation of the deferred tax asset valuation allowance account is subjective and therefore provides management the opportunity to manage earnings.
Answer the following statement true (T) or false (F)
Calculate the return on assets for Nestor Inc., which generates a net profit of $45 million from its assets worth $780 million
A) 57.1% B) 45% C) 28.5% D) 17.5% E) 5.7%
Stare decisis:
A. creates harsh results by refusing to recognize equitable exceptions. B. means a new statute applies only to actions taken after it becomes effective. C. renders law rigid and unchanging. D. lends predictability to decisional law by relying on prior decisions.
Which of the following is not a disclosure for derivatives required under SFAS No. 133?
a. Firms must describe their risk management strategy and how particular derivatives help accomplish their hedging objectives. b. For fair value and cash flow hedges, firms must disclose the net gain or loss recognized in earnings resulting from the hedges' ineffectiveness and the line item on the income statement that includes this net gain or loss. c. For cash flow hedges, firms must describe the transactions or events that will result in reclassifying gains and losses from other comprehensive income to net income and the estimated amount of such reclassifications during the next 12 months. d. The specifics of a model that simulates with a 95 percent or other confidence level the minimum, maximum, or average amount of loss that a firm would incur.