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:

Social Movements

Organized collective activities that aim to bring about or resist change in society, focusing on specific political or social issues.

Enemies of Democracy

Individuals, groups, or states that oppose democratic principles, values, and practices, aiming to undermine or eliminate democratic institutions and processes.

Economic Collapse

Economic collapse describes a sudden and severe downturn in the economy of a country or region, characterized by extreme financial distress, such as a stock market crash, hyperinflation, or the fall of a currency.

Unemployment

The condition of being without a job, but actively seeking work and willing to work, often used as an important economic indicator.