Which of the following is true of traditional financial reporting?

Question

​Which of the following is true of traditional financial reporting?

Quizplus · Accepted Answer

Traditional financial reporting must adhere to generally accepted accounting principles (GAAP) to ensure consistency and comparability across companies. GAAP provides a set of guidelines and standards that companies must follow when preparing their financial reports.

Answer: C
 Traditional financial reporting does not require that the report contents be verified by an independent third party. However, auditors are commonly hired by companies to conduct an independent audit of their financial statements and ensure their accuracy and compliance with GAAP.

Answer: D
 This statement is false. Traditional financial reporting and corporate sustainability reporting are two separate concepts. Traditional financial reporting focuses on reporting a company's financial performance, while sustainability reporting focuses on reporting a company's environmental, social, and governance (ESG) performance.

​Which of the Following Is True of Traditional Financial Reporting

Which of the Following Is True of Traditional Financial Reporting