P 2-9

An auditors report is the formal presentation of all the effort that goes into an audit. Below is a list of the classifications of audit opinions that can be found in an auditors report as well as a list of phrases describing the opinions.

Classifications of Audit Opinions

a. Unqualified opinion

b. Qualified opinion

c. Adverse opinion

d. Disclaimer of opinion

P 2-10

A company prepares financial statements in order to summarize financial informa- tion. Below are a list of financial statements and a list of descriptions.

Financial Statements

a. Balance sheet

b. Income statement

c. Statement of cash flows

d. Statement of stockholders equity

Descriptions

1. Details the sources and uses of cash during a specified period of time.

2. Summary of revenues and expenses and gains and losses for a specific period of time.

3. Shows the financial condition of an accounting entity as of a specific date.

4. Presents reconciliation of the beginning and ending balances of the stockholders equity

accounts.

Required Match each financial statement with its description.