Because a firm has considerable discretion in reporting performance results,financial reports can sometimes be _____ without technically being illegal.
A)inaccurate
B)misleading
C)unreliable
D)bellicose

Question

Quizplus · Accepted Answer

Financial reports can be prepared in a way that is technically legal but still misleading to readers. This can happen when a firm has a lot of leeway in choosing how to present certain financial information, such as using nonstandard accounting methods or excluding certain expenses from the calculation of profitability. As a result, the reports may not accurately reflect the company's true financial health.

Because a Firm Has Considerable Discretion in Reporting Performance Results,financial