What four financial statements can be found in a firm's K filing? What checks are there on the accuracy of these statements?
What four financial statements can be found in a firm's K filing? Select the best choice below.
A Balance sheet, asset and liability statement, statement of cash flows, and statement of stockholders' equity
B Balance sheet, cash budget, earnings statement, and statement of stockholders' equity
C Balance sheet, income statement, statement of cash flows, and Statement of income and expenses
D Balance sheet, income statement, statement of cash flows, and statement of stockholders' equity
What checks are there on the accuracy of these statements? Select the best choice below.
A Financial statements are always sufficiently accurate so no checks are needed.
B The accuracy of the firm's financial statements is certified by the firm's board of directors, which is the only required check.
C It is up to each investor to certify the accuracy of the financial statements.
D Financial statements in form K are required to be audited by a neutral third party, who checks them and ensures that the financial statements are prepared according to GAAP and that
the information contained is reliable.
