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:

Genetic Influences

The effects of genes passed from parents to offspring that contribute to individual characteristics and behaviors.

Morningness-Eveningness

A spectrum indicating an individual's natural preference for being active and awake in the mornings or evenings.

Personality Traits

Enduring characteristics and behaviors that define an individual and distinguish them from others.

Twin Study

A research method in genetics and psychology that compares the similarities between monozygotic (identical) and dizygotic (fraternal) twins to understand the influence of genetics versus environment on traits and behaviors.