To provide information to investors and creditors

To comply with regulatory requirements

To help management make decisions

To provide information to the general public

Balance sheet

Income statement

Statement of cash flows

Statement of retained earnings

Assets are owned by the company, while liabilities are owed to the company.

Assets are recorded on the balance sheet, while liabilities are recorded on the income statement.

Assets are used to generate revenue, while liabilities are used to pay expenses.

Assets are reported at their historical cost, while liabilities are reported at their fair value.

To show the company's profits and losses over a period of time

To show the company's assets and liabilities at a specific point in time

To show the company's cash flows over a period of time

To show the company's retained earnings over a period of time

To show the company's profits and losses over a period of time

To show the company's assets and liabilities at a specific point in time

To show the company's cash flows over a period of time

To show the company's retained earnings over a period of time

Debits increase assets and expenses, while credits decrease assets and expenses.

Debits decrease assets and expenses, while credits increase assets and expenses.

Debits increase liabilities and equity, while credits decrease liabilities and equity.

Debits decrease liabilities and equity, while credits increase liabilities and equity.

To express an opinion on the fairness of the financial statements

To detect fraud and errors in the financial statements

To ensure that the financial statements comply with GAAP

All of the above

GAAP is the accounting standard used in the United States, while IFRS is the accounting standard used in the European Union.

GAAP is the accounting standard used by public companies, while IFRS is the accounting standard used by private companies.

GAAP is the accounting standard used by for-profit companies, while IFRS is the accounting standard used by not-for-profit companies.

GAAP is the accounting standard used by companies that are listed on a stock exchange, while IFRS is the accounting standard used by companies that are not listed on a stock exchange.

To compare a company's financial performance to its own historical performance

To compare a company's financial performance to the performance of other companies in the same industry

To identify trends in a company's financial performance

All of the above

Current assets are expected to be converted into cash within one year, while non-current assets are expected to be converted into cash after one year.

Current assets are used in the day-to-day operations of the business, while non-current assets are not.

Current assets are reported on the balance sheet, while non-current assets are reported on the income statement.

Current assets are valued at their historical cost, while non-current assets are valued at their fair value.

Current liabilities are expected to be paid within one year, while non-current liabilities are expected to be paid after one year.

Current liabilities are used in the day-to-day operations of the business, while non-current liabilities are not.

Current liabilities are reported on the balance sheet, while non-current liabilities are reported on the income statement.

Current liabilities are valued at their historical cost, while non-current liabilities are valued at their fair value.

To recognize a liability that is uncertain in amount or timing

To recognize an expense that is uncertain in amount or timing

To recognize a loss that is uncertain in amount or timing

All of the above

A contingent liability is a potential liability that may or may not occur, while a provision is a liability that is certain to occur.

A contingent liability is reported on the balance sheet, while a provision is reported on the income statement.

A contingent liability is valued at its historical cost, while a provision is valued at its fair value.

All of the above

To recognize a future tax benefit

To recognize a future tax expense

To recognize a future tax loss

None of the above

To recognize a future tax benefit

To recognize a future tax expense

To recognize a future tax loss

None of the above