XBRL facilitates the preparation of consolidated financial statements by allowing companies to tag financial data in a standardized format, making it easier to consolidate data from multiple sources. It does not remove the need for accountants to understand debits and credits, and may not necessarily reduce internal audit costs. It can be used by organizations of any size, not just multi-divisional ones.

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XBRL

Question 23

Multiple Choice

XBRL:

A) Removes the need for accountants to understand debits and credits.
B) Reduces internal audit costs.
C) Should only be used by multi-divisional organizations.
D) Facilitates the preparation of consolidated financial statements.

Correct Answer: