Claims regarding the condition of the business organization and in terms of its operations, financial results, and compliance with laws and regulations, are referred to as:
A)Financial Statements
B)Management Assertions
C)External Audit
D)Presentation and Disclosure

Question

Quizplus · Accepted Answer

Claims regarding the condition of the business organization and its operations, financial results, and compliance with laws and regulations are referred to as management assertions. Financial statements are the end result of financial reporting and include the balance sheet, income statement, and cash flow statement. External audit is the process of reviewing financial statements to ensure they are accurate and comply with accounting standards. Presentation and disclosure refer to how financial information is presented to users of financial statements.

Claims Regarding the Condition of the Business Organization and in Terms