Financial Statements That Do Not Include Interpretation and Explanation by Management

question 112

Multiple Choice

Financial statements that do not include interpretation and explanation by management are in violation of which GAAP principle?

• A) principle of sincerity
• B) principle of continuity
• C) principle of full disclosure
• D) principle of regularity
• E) principle of prudence

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Definitions:

Modality

A method of engagement or the way in which something exists or is experienced.

Variability

A statistical measure that expresses the degree of dispersion or spread in a data set, indicative of how much individuals within the set differ.

Symmetry

A property of shapes or designs where one half is a mirror image of the other half.

Bimodal

Describing a distribution that has two different modes or peaks in its frequency of occurrence.