Flexible financial accounting standards

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Reference no: EM131451564

One of the main reasons that firms are allowed flexible financial accounting standards under GAAP is...?

a. It provides firms a better opportunity to report the underlying economic substance of transactions and events.

b. It gives the firms the opportunity to reduce the volatility of earnings so that investors can provide better forecasts of future performance.

c. It allows managers to better tie earnings to performance for compensation purposes.

d. It gives firms the opportunity to mark-to-market the physical assets so that balance sheet values are more relevant to decision makers.

e. None of the above.

Reference no: EM131451564

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