1) An annual report provides information about a company's financial condition.
2) A quarterly report filed with the Securities and Exchange Commission is called a Form 10-K.
3) Management's discussion and analysis section of the annual report is the company's attempt to explain its financial statements and to discuss its performance.
4) The audit report is prepared by an internal auditor of a company.
5) The audit report attests to the fairness of the presentation of the financial statements.
6) An external auditor is responsible for assessing the effectiveness of a company's internal controls.
7) An unqualified opinion in an audit report states that the financial statements are presented fairly, in all material respects.
8) An adverse opinion is issued if the auditor finds that the financial statements are not presented fairly.
9) The income statement is also known as the:
A) statement of operations.
B) statement of cash flows.
C) statement of stockholders' equity.
D) statement of financial position.
10) A summary of significant accounting policies and explanations of specific items on the financial statements will be given in:
A) the balance sheet.
B) the income statement.
C) notes to financial statements.