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

Question

Quizplus · Accepted Answer

While financial reports must be technically accurate and reliable, they can still be misleading if certain information is omitted or presented in a way that highlights positive results while downplaying negative ones. However, intentionally providing inaccurate information would be illegal. The term "bellicose" (meaning aggressive or warlike) does not apply to financial reporting.

Because a Firm Has Considerable Discretion When Revealing Performance Results