GAAP's goals are to ensure that financial statements
A)do not contain any representation that could jeopardize management.
B)provide stockholders all of the information they need to assess management's performance.
C)are accurate and free from fraud.
D)clearly reflect the economic condition and performance of the company.

Question

Quizplus · Accepted Answer

GAAP's primary goal is to ensure that financial statements are accurate and provide a clear representation of the economic condition and performance of the company. This includes ensuring that financial statements are free from fraud and any misrepresentations that could mislead investors or other users of the financial statements. While GAAP does aim to provide information to stakeholders, its primary objective is to ensure the accuracy and reliability of financial reporting.

GAAP's Goals Are to Ensure That Financial Statements