ACCA FA · Chapter 1 · Question 7 of 10
Which of the following statements regarding responsibility for the financial statements of a limited liability company is correct?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) The directors are responsible for preparing financial statements that give a true and fair view
Explanation
Company directors have the legal responsibility for keeping adequate accounting records and for preparing financial statements that give a true and fair view. External auditors give an independent opinion on those statements but do not prepare them. Shareholders receive the statements, and the IASB sets standards but does not check individual companies.
More The context and purpose of financial reporting MCQs
- Q9In an ordinary (unlimited) partnership, which of the following statements is correct?
- Q10Which financial statement reports the assets, liabilities and equity of an entity at a specific date?
- Q1According to the IASB Conceptual Framework, what is the objective of general purpose financial reporting?
- Q2Which user group is MOST likely to use financial statements to assess the stability and profitability of an entity as an indicator of its…
- Q3Which of the following statements about financial accounting and management accounting is correct?