GAAP emphasizes the importance of full disclosure by management including all of the following enhancements except
A)explanations to enhance understanding of major transactions
B)interpretations of the effects of dividing continuous operations into accounting periods
C)outlines of internal control procedures in use
D)explanations of underlying assumptions and methods used

Question

Quizplus · Accepted Answer

GAAP (Generally Accepted Accounting Principles) focuses on ensuring that financial statements are transparent and provide a true and fair view of the company's financial position. This includes providing explanations to enhance understanding of major transactions, interpretations of the effects of dividing continuous operations into accounting periods, and explanations of underlying assumptions and methods used. However, outlining internal control procedures in use is not a requirement under GAAP for financial statement disclosures. Internal control procedures are more related to the company's operational and compliance aspects, and while they are important for the overall governance and risk management of the company, they are not typically disclosed in financial statements under GAAP.

GAAP Emphasizes the Importance of Full Disclosure by Management Including