Maria comes to you for investment advice. She asks, “Which company’s stock should I buy? There are so many companies to choose from and I don’t know anything about any of them.”Required:Respond to Maria by explaining the two functions of financial accounting. Specifically address the four financial statements reported by companies and the information contained in each. Also explain the role of the auditor in the preparation of financial statements.

Maria comes to you for investment advice. She asks, “Which company’s stock should I buy? There are so many companies to choose from and I don’t know anything about any of them.”Required:Respond to Maria by explaining the two functions of financial accounting. Specifically address the four financial statements reported by companies and the information contained in each. Also explain the role of the auditor in the preparation of financial statements.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter14: Corporation Accounting

Section: Chapter Questions

Problem 9PB: You are a CPA working with sole proprietors. Several of your clients are considering incorporating...

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