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The financial statements of a company are management's, not

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Briefly discuss:

2. "The financial statements of a company are management's, not the accountant's." What does this mean?

3. What are interim reports? Why are balance sheets often not provided with interim data?

5. What's the difference between ratio analysis and percentage analysis when interpreting financial statements? What is the value of these two types of analyses?

7. What's the difference between investing activities, financing activities, and operating activities.

9. Identify and explain one of the major steps involved in preparing the statement of cash flows.

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Solution Summary

The financial statements of a company are management's, not the accountant's." What does this mean?

3. What are interim reports? Why are balance sheets often not provided with interim data?

5. What's the difference between ratio analysis and percentage analysis when interpreting financial statements? What is the value of these two types of analyses?

7. What's the difference between investing activities, financing activities, and operating activities.

9. Identify and explain one of the major steps involved in preparing the statement of cash flows.

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2. "The financial statements of a company are management's, not the accountant's." What does this mean?

-- This means that basically the management of a company prepares the information for the financial statements in a way that is designed to uphold the integrity, accuracy, and integrity of the financial statements. The burden rests on management, not on the accountant. If management has the goal of presenting the accounting information in a certain way, they can do so, and the accountant can then determine if GAAP has been violated. The company's financial statements are prepared for external users, but belong to management, because they have been prepared by management, based on the accounting principles and policies that management has in-place, within the organization.

3. What are interim ...

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