Uncertainties and biases do not affect external financial reports, because these reports are based on objective standards.

Question

Quizplus · Accepted Answer

Uncertainties and biases can potentially affect external financial reports, as they are prepared by humans and subject to interpretation and judgment. While there are objective standards and guidelines to follow, there is still room for error or bias. It is important for companies to transparently disclose any known uncertainties or biases in their financial reports.

Uncertainties and Biases Do Not Affect External Financial Reports, Because