While GAAP does not ensure accuracy, it is helpful to the analyst in that statements that conform to GAAP rules must adhere to certain standards.

Question

Quizplus · Accepted Answer

GAAP provides consistency and transparency in financial reporting, which helps analysts make more informed decisions. While it does not guarantee accuracy, adherence to GAAP standards promotes accountability and reduces the risk of errors or intentional misstatements.

While GAAP Does Not Ensure Accuracy, It Is Helpful to the Analyst