Which of the following is one of the useful features of financial statements?
A) GAAP statements always clearly separately disclose fixed and variable costs.
B) GAAP statements include adjustments for the effects of inflation.
C) GAAP statements are prepared and issued weekly, so they are the most timely sources of information to investors.
D) GAAP financial statements are produced periodically, and contain information that can be used to analyze company profitability and solvency.

Question

Quizplus · Accepted Answer

GAAP financial statements are typically produced on a quarterly or annual basis and provide information on a company's financial performance and health. This information can be used to analyze a company's profitability and solvency. Option A is incorrect because GAAP statements do not always disclose fixed and variable costs separately. Option B is incorrect because GAAP does not include adjustments for the effects of inflation. Option C is incorrect because GAAP statements are not produced weekly, but rather periodically.

Which of the Following Is One of the Useful Features