Financial statements prepared under generally accepted accounting principles are meant to compute the market value of the company as of the balance sheet date.

Question

Quizplus · Accepted Answer

Financial statements prepared under generally accepted accounting principles are meant to provide a snapshot of a company's financial position, performance and cash flows during a defined period, and not necessarily its market value. Market value is determined by external factors such as supply and demand, industry trends, and investor sentiment.

Financial Statements Prepared Under Generally Accepted Accounting Principles Are Meant