Financial Accounting
Financial Accounting
17th Edition
ISBN: 9781259692390
Author: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
Publisher: McGraw-Hill Education
Question
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Chapter 5, Problem 1STQ
To determine

Indicate the accounting activities that are likely to occur at or shortly after year-end under the publicly owned company.

Expert Solution & Answer
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Answer to Problem 1STQ

The publicly owned company includes all the given accounting activities like:

  1. a. Preparation of income tax returns.
  2. b. Adjusting and closing of the accounts.
  3. c. Drafting of disclosures that accompany the financial statements.
  4. d. An audit of the financial statements by an independent CPA firm.

Explanation of Solution

Publicly owned companies:

Publicly owned companies are those companies whose shares are listed on a stock exchange. Moreover, these companies have huge responsibilities to release the quarterly and annual information to the stockholders of the company and publish annual reports to the public. The certified public accountants (CPAs) audit the financial statements of the publicly owned companies.

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