What Is the Main Reason That It Is Necessary for Public

question 42

Multiple Choice

What is the main reason that it is necessary for public companies to follow the rules and format set out in the Generally Accepted Accounting Principles (GAAP) when creating financial statements?

• A) It ensures that important information is not omitted and superfluous information is not included.
• B) It ensures that information on the performance of private companies is readily available to the public.
• C) It makes it easier to compare the financial results of different firms.
• D) It is easier to find specific information in such a report if it is laid out in a clear and consistent manner.

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Definitions:

Hallucinations

Perceptions in a conscious and awake state in the absence of external stimuli which have qualities of real perception.

Compulsions

Actions or thoughts repeatedly carried out by a person compelled by an obsession or by strict rules.

GAF

Global Assessment of Functioning; a numeric scale (0 to 100) used by mental health clinicians and physicians to subjectively rate the social, occupational, and psychological functioning of adults.

Axis 4

Refers to the classification in previous versions of the Diagnostic and Statistical Manual of Mental Disorders (DSM) that dealt with psychosocial and environmental problems affecting diagnosis, treatment, and prognosis.