3) The account that links the statement of earnings to the statement of financial position is:

O a. Nel earnings

O b. Retained earnings

O c. Sales revenue

O d. Total expenses

O e. Shareholders equity

4) Which of the following statements regarding auditors is true?

O a. Auditors provide 100 percent assurance that the financial statements are accurate.

O b. Auditors check every transaction to determine lil was properly recorded.

0 c. Auditors form an opinion about whether the financial statements present fairly the financial position

and results of the accounting period.

O d. Auditors prepare the financial statements of a company.

O e. Auditors are generally government officials.