Reference no: EM131262860
GAAP's goals are to ensure that financial statements:
a. do not contain any representation that could jeopardize management
b. provide stockholders all of the information they need to assess management's performance
c. are accurate and free from fraud
d. clearly reflect the economic condition and performance of the company
Companies offering risk securities have incentives to mask their true condition by:
a. supplying overly optimistic financial information
b. not having their financial statements audited
c. listing on foreign exchanges where reporting requirements are less stringent than those in the U.S.
d. including testimonials from well-known executives in their financial statements
Using the same accounting methods to record and report similar events from period to period demonstrates:
a. consistency
b. comparability
c. neutrality
d. faithful representaiton
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