Question

Identify the information that the current Generally Accepted Accounting Principles and Auditing Standards require the financial statements of an entity to show for the reporting period:_________.1. Budgeting vs actual comparisons of key balance sheet and income statement accounts2. Market value of the entity's net assets3. Number of people employed by the entity4. Investments by and distribution to owners (ex: stockholders) during the period5. Financial Position at the end of the period6. Cash flows during the period7. Earnings for the period

Answer 1

Answer:

4. Investments by and distribution to owners (ex: stockholders) during the period.

5. Financial Position at the end of the period.

6. Cash flows during the period.

7. Earnings for the period.

Explanation:

The information that the current Generally Accepted Accounting Principles (GAAP) and Auditing Standards require the financial statements of an entity to show for the reporting period are;

1. Investments by and distribution to owners (ex: stockholders) during the period.

2. Financial Position at the end of the period.

3. Cash flows during the period.

4. Earnings for the period.

The Financial Accounting Standards Board (FASB) issued some standards, accounting principles, and procedures to be followed by public companies in the United States of America for reporting and recording statements of income, this is known as the Generally Accepted Accounting Principles (GAAP).

The GAAP is also adopted by the Securities and Exchange Commission (SEC) to measure, analyze and regulate the stock market.