Considering and understanding how business decisions affect the financial statements is
A)The sole responsibility of the Securities and Exchange Commission.
B)Provided in the auditor's report.
C)Referred to as an economic consequence perspective.
D)Interpreted strictly by the company's suppliers.

Question

Quizplus · Accepted Answer

Understanding how business decisions affect the financial statements from an economic consequence perspective is important for decision-making and financial reporting. This is not solely the responsibility of the Securities and Exchange Commission or the company's suppliers, and while an auditor's report may provide some insight, it is not the primary source of information for understanding the impact of business decisions on financial statements.

Considering and Understanding How Business Decisions Affect the Financial Statements