What Is the Main Reason That It Is Necessary for Public

question 4

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

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Definitions:

Solution

Solution is a means of solving a problem or dealing with a difficult situation.

Capture Errors

Describes mistakes that occur when a routine action is inadvertently captured by a stronger habit and proceeds automatically in the wrong direction.

A-not-B Error

A cognitive error observed in infants, where they search for an object at its initial hiding place (A) even after seeing it moved to a new location (B).

Motor Perseveration

The repetitive and continuous movement or action that an individual keeps doing in the same way despite the absence of a reason or the ability to adapt to new situations.