Which of the following supports the use of "simplified GAAP" for private companies?
A)Private companies usually have less complex business models.
B)The financial statement users of private companies tend to have first-hand information.
C)Private companies tend to have fewer users.
D)All of these

Question

Quizplus · Accepted Answer

All of these factors support the use of "simplified GAAP" for private companies. Private companies are often less complex, have fewer users of financial statements, and their users tend to have more first-hand information about the company's operations. Simplifying GAAP for private companies can reduce the costs and complexities associated with preparing financial statements while still providing relevant and reliable information to users.

Which of the Following Supports the Use of "Simplified GAAP