11 corporate governance refers to the procedures designed to ensure that the company 4314172

11.Corporate governance refers to the procedures designed to ensure that the company is managed in the interest of the board of directors who oversee management.

12.The fraud triangle conditions necessary for financial statement fraud to occur are the existence of a system of internal control, the ability to invade the system, and rationalization to commit the fraud.

13.The form 10-Q contains an unaudited set of quarterly financial statements.

14.The form 10-K is the annual report that publically traded companies must file with the Securities & Exchange Commission (SEC).

15.Sales by major product category is a required financial statement disclosure.

16.Information on all contractual agreements is included in notes as a financial statement disclosure.

17.Inventories are reported on the balance sheet as a current asset.

18.Intangible assets are reported on the balance sheet as a current asset.

19.Intangible assets are reported on the balance sheet as noncurrent assets and include goodwill.

20.Comparative financial statements are those of a company in one industry presented with another company in the same industry.

5-1

Copyright © 2017 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.