A firm's financial statements are
A) all developed using the same methods.
B) an output model of the firm.
C) based on economic valuation.
D) based on market value of assets.

Question

Quizplus · Accepted Answer

Financial statements are an output model of the firm's financial performance and position, presenting information on the firm's various activities such as operating, investing, and financing. They are not based on economic valuation or market value of assets. Different methods may be used to prepare different financial statements based on their purpose and the accounting standards applicable to the firm.

A Firm's Financial Statements Are