The following statements describe the annual report issued by Short Sheet Company for the fiscal year ended December 31, 2004 A The report was issued on October 1, 2005 B The balance sheet included managements estimates of the increased value of certain fixed assets during 2004 C Procedures used to...

A The report was issued on October 1 2008 The report was not issued in a timely manner It was releas ...

The following statements describe the annual report issued by Short Sheet Company for the fiscal year ended

Question:

The following statements describe the annual report issued by Short Sheet Company for the fiscal year ended December 31, 2004.
A. The report was issued on October 1, 2005.
B. The included management’s estimates of the increased value of certain fixed assets during 2004.
C. Procedures used to calculate revenues and expenses were different for 2004 than for 2003 and earlier years.
D. Short’s were audited by an accounting firm owned by the president’s brother.
E. Some of the company’s major liabilities were not included in the annual report.

Required
For each statement, identify the qualitative characteristic that has been compromised.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...