In order to ensure that they are meaningful and useful,financial statements should be prepared
A) in accordance with section 108 of the Sarbanes-Oxley Act.
B) on a daily basis.
C) on a timely basis.
D) using generally accepting accounting principles (GAAP).

Question

Quizplus · Accepted Answer

Financial statements should be prepared using generally accepted accounting principles (GAAP) in order to ensure that they are reliable, accurate, and useful to investors and other users of financial information. GAAP provides a uniform set of standards and guidelines for financial reporting, which helps to ensure consistency and comparability across different organizations and industries. Timely preparation of financial statements is also important to ensure that they reflect up-to-date information and are useful for decision-making. While the Sarbanes-Oxley Act, which was enacted in response to corporate accounting scandals, includes provisions related to financial reporting and internal controls, it does not dictate specific requirements for financial statement preparation. Daily preparation of financial statements is not necessary or feasible for most organizations, as the information included in financial statements is typically based on monthly, quarterly, or annual accounting periods.

In Order to Ensure That They Are Meaningful and Useful,financial