When preparing accounting information, understand that:
A) the auditors are primarily responsible for preparing the information.
B) the cost of disclosure should not exceed the expected benefits to the users.
C) accounting information can be produced quickly and inexpensively.
D) all information must be disclosed for a complete understanding of the underlying economic facts.

Question

Quizplus · Accepted Answer

It is important to balance the cost of preparing and disclosing accounting information with the expected benefits to the users of the information. Excessive disclosure can lead to unnecessary costs for the organization, while insufficient disclosure may hinder users' ability to make informed decisions. The auditors are responsible for verifying the accuracy and completeness of the information, but not for preparing it. Accounting information may not always be produced quickly and inexpensively, as it requires careful recording and analysis of financial transactions. Finally, while complete disclosure is important, it may not always be necessary for users to have access to all of the underlying economic facts in order to make informed decisions.

When Preparing Accounting Information, Understand That