In contrast to the financial statements of publicly help firms, private company financials often include personal expenses of the owner and excess compensation expenses.

Question

Quizplus · Accepted Answer

Private company financials are not subject to the same regulations and scrutiny as publicly held firms, which can sometimes allow for personal expenses of the owner and excess compensation expenses to be included in the financial statements. However, this is not always the case and is dependent on the specific situation and accounting practices of the private company.

In Contrast to the Financial Statements of Publicly Help Firms