3.For each financial statement listed in 1 through 4 below, place the letter (A through D) of the best description in the space provided. You may use each letter more than once or not at all.
Descriptions
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A.
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Assets, liabilities, and shareholders’ equity
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B.
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Increased by net income and decreased by dividends
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C.
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Operating, investing, and financing activities
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D.
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Revenues less expenses
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_______1.Balance sheet
_______2.Income statement
_______3.The retained earnings section of the statement of shareholders’ equity
_______4.Statement of cash flows
4.Identify which accounting document(s) listed in A through D would always provide the information indicated in items 1 through 5 below. You may use each letter more than once or not at all. Some items may require more than one answer.
Accounting Documents
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A.
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Auditor’s report
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B.
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Management letter
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C.
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Financial statements
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D.
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Footnotes
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_______1.Represents that the financial statements are stated fairly, in all material respects
_______2.Indicates that financial statements were prepared in conformity with GAAP
_______3.Contains assets, liabilities, and equity, as well as income from operations
_______4.Explains certain items on the balance sheet
_______5.An acceptance of responsibility of financial information provided