Which statement is TRUE regarding financial statements?
A) All financial statements follow precisely the same format.
B) There is an international set of rules that businesses must follow when preparing financial statements.
C) All industries use the same generally accepted accounting principles to develop financial statements.
D) Different types of organizations use different sets of accounting principles agreed upon by the public accounting profession.
E) There is a template businesses are required to use when preparing financial statements.

Question

Quizplus · Accepted Answer

It is important to recognize that not all financial statements follow precisely the same format. The fact that different organizations generate income in different ways suggests that when it comes to financial statements, one size definitely does not fit all. Manufacturing firms, service providers, and nonprofit organizations each use a different set of accounting principles or rules upon which the public accounting profession has agreed.

Which Statement Is TRUE Regarding Financial Statements