Since External Users of Financial Statements Have No Way to Verify

question 132

Multiple Choice

Since external users of financial statements have no way to verify the reported information

• A)they cannot make informed decisions from financial information.
• B)FASB provides consequences to companies who distribute false managerial accounting reports to outsiders.
• C)GAAP provides a level of protection or assurance that the reports will follow certain standards.
• D)IFRS provides a level of assurance that reported information is accurate.

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Definitions:

Metaconscious

An awareness of one's own consciousness, or the ability to think about one’s own thought processes.

Semiconscious

A state in which a person is only partly aware of themselves and their environment, often found in conditions of drowsiness or faintness.

Catatonic

Relating to a psychomotor disturbance, characterized by a marked decrease in movement or rigidity, often associated with schizophrenia or other mental disorders.

Social Cognitive Theory

An educational and behavioral theory that posits individuals can develop new behaviors through the observation and imitation of others.