The process of verifying accounting information in financial statements is undertaken by:

A.external auditors only.

B.the Securities and Exchange Commission.

C.internal and external auditors.

D.internal auditors only.

Which financial statement answers the following question: How well did the company perform during theyear?

A.statement of cash flows

B.income statement

C.balance sheet

D.statement of retained earnings

Which transaction increases stockholders' equity?

A. dividens that are declared and paid

B.sale of common stock

C.expenses greater than revenues for the period

D.payment of operating expenses