Which of the following is true of financial statements?
A) The customization of financial reports is illegal in all states.
B) The overall content and form of financial statements have been made standard by long usage.
C) Bankers and investors are typically new and unacquainted with standard financial statements.
D) The differences unique to each industry cannot be represented accurately in financial statements.

Question

Quizplus · Accepted Answer

The overall content and form of financial statements have been made standard by long usage, and are generally accepted and understood by bankers, investors, and others who regularly use them. Customization of financial reports is not illegal, but any changes or adjustments made should be clearly disclosed to ensure transparency and accuracy. While differences do exist between industries, financial statements can still accurately represent and provide insight into the financial health and performance of a company within its specific industry.

Which of the Following Is True of Financial Statements