What Is the Main Reason That It Is Necessary for Public

question 43

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

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Definitions:

Valence

In motivational theory, the value an individual places on the rewards of an outcome, which affects their motivation to work.

Performance

The act of carrying out an activity or fulfilling a task with a certain level of efficiency and effectiveness, often measured against pre-established standards.

Self-efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance achievements.

Task Performance

An individual's effectiveness in executing the duties and responsibilities that directly support the core functions of their job.