16 The financial statements d 15. ,I gor a grep na agene hip apart eCPAs in public practice )might use financial statement i describe the way that accounting meusured are determined in the United States. managers il the I 19. (Supplement A) Brietly differentiate between a sole Propip, 20. (Supplement B) Lis and briefly explain the three primary services that CPAs nda cor 18. Briefly explain the responsibility of accounting communication process or A) Briefly diferentiate between a sole proprietorship, a partnershi 10. HOICE QUESTIONS following is not one of the four basic financial statements? Income statement c. shtatement of cahe primary responsibility for I. Which of the a. Balance sheet Audit report 2 A stated in the audit repor,or Report of Independent Accountants, the primary res a company's financial statements lies with a. The owners of the company c. The auditors. d. The company's management. Independent financial analysts. 3. Which of the following is true? a. FASB creates SEC b. GAAP creates FASB. c. SEC creates AICPA. d. FASB creates U.S. GAAP. 4. Which of the following regarding retained earnings is false by net income and decreased by a net loss. b. Retained earnings is a component of stockholders equity on the balance sheet. c. Retained earnings is an asset on the balance sheet. d. Retuined carnings represents carnings not distributed to stockholders in the form of dividends 5. Which of the following is not one of the four items required to be shown in the heading of a fi statement? a. The financial statement preparer's name. b. The title of the financial statement. c. The unit of measure in the financial statement. d) The name of the business entity. 6. Which of the following statements regarding the statement of cash flows is true? a. The statement of cash flows separates cash inflows and outflows into three major categories:. operating, investing, and financing. shown on the balance sheet for the same fiscal period. b. The ending cash balance shown on the statement of cash flows must agree with c. The total increase or decrease in cash shown on the statement of cash flows must agree w bottom line" (net income or net loss) reported on the income statement. d. Both (a) and (b) are true e. All of the above. with the