Financial statements that do not include interpretation and explanation by management are in violation of which GAAP principle?
A) principle of sincerity
B) principle of continuity
C) principle of full disclosure
D) principle of regularity
E) principle of prudence

Question

Quizplus · Accepted Answer

C)Because they know about events inside the company, the people in management prepare additional information to explain certain events or transactions or to disclose the circumstances behind certain results.

Financial Statements That Do Not Include Interpretation and Explanation by Management