True/False Questions

Question

Finance True/False Questions...please help!

1. The main function of an external auditor is to correct the data presented in the financial reports and statements.

2. Financial statements for a specific period are more accurate in indicating the trends of a business than are the comparative financial statements.

3. Short term creditors are more interested in comparative income statements than in comparative balance sheets for one fiscal period.

4. A financial report tells the whole story of a business since the business began.

Answer 1

1. No idea

2.I don't care

3.umm... sure true

4.yeahhhh don't care...

Answer 2

1) False. The purpose of a financial auditor is not to correct the data presened in the financial reports and statements but rather to express an opinion on whether the financial reports and statements present fairly, in all material respects, the financial position of a company in accordance with generally accepted accounting principals (GAAP).  As written in the standard auditor's report, "the financial statements are the responsibility of the copany's management," therefore a financial auditor need not correct incorrect data.    

2) False.  Comparative statements, which include financial data from multiple years, indicate the trends of a business.  No trends can be detected simply by analyzing the figures on the financial statements from a specific period.

3) True.  Short-term creditors would probably be more interested in comparative income statements because this particular financial report reveals whether or not the company is making a profit each year.  If, after paying all of their expenses and fulfilling all of their short-term obligations, the company still has a profit, then it will probably be capable of paying back a loan within a short period.  Long-term creditors, on the other hand, would probably be more interested in the blaance sheet because this report is more predictive of the long-term financial future of a company since it lists out all of the long-term obligations and plant assets and it shows how much equity the company has.  

4) False.  Although a financial report gives a third party some idea of the financial status of a business, it does not give the whole story of the business since the business began.  

I hope this helps!  :)

Answer 3

true false true true. hope that helps you

Answer 4

1. TRUE

2. FALSE

3. TRUE

4. can say either way depending on the business, but no..FALSE.

Answer 5

sorry dude, they word it differently everywhere i look. but this is the impression i got from my research.

1. false

2. True

3. True

4. True

Answer 6

the answer to all of them is true or false,

um i think thats just off the top of my head though...