As long as an accountant carefully follows GAAP, financial statements will always accurately portray economic reality.

Question

Quizplus · Accepted Answer

While following GAAP is key to producing accurate financial statements, it is not a guarantee. There are still opportunities for errors or misrepresentations, intentionally or unintentionally. Plus, GAAP may not always fully capture the economic reality of a company's operations.

As Long as an Accountant Carefully Follows GAAP, Financial Statements