In Order to Ensure That They Are Meaningful and Useful,financial

question 43

Multiple Choice

In order to ensure that they are meaningful and useful,financial statements should be prepared

• A) in accordance with section 108 of the Sarbanes-Oxley Act.
• B) on a daily basis.
• C) on a timely basis.
• D) using generally accepting accounting principles (GAAP).

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Definitions:

Misrepresentation

Misrepresentation occurs when a false statement of fact is made that induces another party to enter into a contract, potentially leading to legal consequences.

Third Restatement of Torts

An influential set of principles released by the American Law Institute, providing a comprehensive update and clarification on tort law in the United States.

Fiduciary Duty

A legal obligation of one party to act in the best interest of another, often in financial matters or trusteeship.

Fraud

is the act of gaining a financial or personal advantage over others through deceit or trickery, often considered a criminal offense.