Which of the following groups has primary responsibility for the information contained in the financial statements?
Posted: Sat Aug 07, 2021 7:03 am
A) The company's management.
B) The company's auditors.
C) The company's investors.
D) SEC.
Answer: A
Explanation: The primary responsibility for the information in the financial statements lies with
management.
Difficulty: 2 Medium
Topic: Accounting communication process-Accuracy
Learning Objective: 01-02 Identify the role of generally accepted accounting principles (GAAP)
in determining financial statement content and how companies ensure the accuracy of their
financial statements.
B) The company's auditors.
C) The company's investors.
D) SEC.
Answer: A
Explanation: The primary responsibility for the information in the financial statements lies with
management.
Difficulty: 2 Medium
Topic: Accounting communication process-Accuracy
Learning Objective: 01-02 Identify the role of generally accepted accounting principles (GAAP)
in determining financial statement content and how companies ensure the accuracy of their
financial statements.