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:

Transcontinental Railroad

A train route across the United States completed in 1869, connecting the east and west coasts, significantly facilitating commerce and settlement.

Melting Pot

A metaphor for a society where many different types of people blend together as one, often used to describe the United States.

Settler Societies

Societies historically established by settlers who colonized land, often displacing indigenous populations, including countries like the United States, Canada, Australia, and New Zealand.