What Is the Main Reason That It Is Necessary for Public

question 79

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 the market value of assets and debt are reported accurately.
• B) It ensures that information on the performance of public companies is reported on cash-basis accounting.
• C) It ensures that important budgetary information is not omitted.
• D) It makes it easier to compare the financial results of different firms.

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Definitions:

Support

In data mining and machine learning, it often refers to the frequency or occurrence of certain patterns or relationships within a dataset.

Population Parameter

A numerical value that represents a characteristic of a population, such as its mean or variance.

Hypothesis

A proposed explanation for a phenomenon, made as a starting point for further investigation.

Assumption

A basic condition or premise considered to be true without verification or proof, often used as a starting point for further analysis.