A company has an obligation to provide highly detailed information on its financial statements.

Question

Quizplus · Accepted Answer

Financial statements can provide only highly summarized economic information.The costs to a company of providing excessively detailed information would be prohibitive.In addition,too much detail leads to information overload,the problem of having so much data that important information becomes obscured by trivial information.

A Company Has an Obligation to Provide Highly Detailed Information