Which of the following statements is false with regard to quality of financial reporting?
A)Financial statements should reflect an accurate picture of a company's financial condition and performance.
B)It is unlikely that management can manipulate the bottom line due to the regulations in place to enforce GAAP.
C)Financial information should be useful both to assess the past and predict the future.
D)The closer that the picture presented through the financial data is to reality, the higher the quality of financial reporting.

Question

Quizplus · Accepted Answer

This statement is false because while regulations are in place to enforce GAAP and deter management from manipulating financial data, there are still instances of fraud and manipulation that occur. Thus, it is not unlikely that management can manipulate the bottom line.

Which of the Following Statements Is False with Regard to Quality