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March 7, 2021
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March 7, 2021
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fa ip 1

2 pages (not including title and ref page)

The new accounting clerks are beginning to gather information to complete financial statements. The accountants will first need to understand what type of information will be needed from the source documents and how these documents tie to financial statements. Before they can do so, they must fully understand who will potentially be reviewing the company’s financials and what type of information may be included. For this task, answer the following questions:

  • Why do the users of financial statements require information to be accurate and free from any material errors?
  • What are some problems that might occur if users of financial statements rely on inaccurate statements?
  • Why is it important for users of financial statements to understand the generally accepted accounting principles (GAAP)?
  • Explain the purpose and objective of source documents.

 

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