Author Question: Write a short essay explaining the following statement: Unfortunately, there are mazelike ... (Read 151 times)

ARLKQ · **on:** Jul 6, 2018

Write a short essay explaining the following statement: Unfortunately, there are mazelike interferences in financial statement data that hinder understanding the valuable information they contain.

What will be an ideal response?

Question 2

Entries required to clear or zero the balances of the temporary accounts at the end of the year are called adjusting entries.
a. True
b. False
Indicate whether the statement is true or false

amit · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

The following items make it more difficult for a user of financial statements to understand the financial data:
Quantity of information
Clean audit reports do not mean the firm will not fail
Complex accounting policies that may be confusing
Accounting rules are constantly changing
Management has discretion in presenting financial information
Some information is not available or is difficult to find in the financial statements

Answer to Question 2

False