Kevin wants Ron to be able to provide physical documentation that his buyers will actually make the purchases he is going to "book and hold." These documents can support his accounting practices in creating financial statements in case an outside firm examines the company's financial statements called a (n)

Question

Business

Danna Orr

11 October, 06:48

Kevin wants Ron to be able to provide physical documentation that his buyers will actually make the purchases he is going to "book and hold." These documents can support his accounting practices in creating financial statements in case an outside firm examines the company's financial statements called a (n)

+3

Answers (2)

Know the Answer?

Livia Downs · Answer 1

Audit

Explanation:

According to a different website, the options included in this question are:

balance sheet risk ratio audit income statement

The correct option is audit. In this example, if the company's financial statements are going to be examined by an outside firm, this means that the company will be subject to an audit. An audit is an evaluation of the financial statements of an organization. This can be conducted in an internal way, but it is most often done by an external firm. The purpose of conducting an audit is to evaluate whether the financial records of the company are accurate.