Which of the following statements is false?
A) It is possible to compare one firm's accounting data with another firm's accounting data as long as both firms used generally accepted accounting procedures.
B) Many managers compare the financial results from one accounting period with the results from previous accounting periods.
C) Most corporations include in their annual reports comparisons of important elements of their financial statements for recent years.
D) The format and information contained in one firm's financial statements are most likely to differ drastically from the format and information contained in another firm's financial statements.
E) Many firms compare their financial results with industry averages.

Question

Quizplus · Accepted Answer

The statement D is false because while there may be minor differences in presentation, the format and information in financial statements are generally consistent across firms due to the adherence to accounting standards such as GAAP (Generally Accepted Accounting Principles) or IFRS (International Financial Reporting Standards). These standards ensure that financial statements are somewhat uniform and comparable across different firms.

Which of the Following Statements Is False