Limitations of the usefulness of financial statements prepared under GAAP include:
A) The statements are often not the most timely source of information.
B) Statements from different companies may follow different accounting methods.
C) The statements are not designed to show the current market value of the company.
D) All of the above

Question

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A) The statements prepared under GAAP are usually issued a few weeks or months after the period ending date, so they may not reflect the most current information.
B) Different companies may use different accounting methods, which may limit the comparability of their financial statements.
C) GAAP requires companies to use historical cost accounting for most assets, and so the statements may not reflect the current market value of the company.

Limitations of the Usefulness of Financial Statements Prepared Under GAAP