Question

The format and information contained in one firm's financial statements are most likely to differ drastically from the format and information contained in another firm's financial statements. True or false?

Answer 1

False

Step-by-step explanation:

A financial statement is a document that shows the financial position/strength as well as business activities of a firm, in a structured form and that is easy to understand.

Just like there are generally accepted accounting principles(GAAP), there are also standard ways of writing financial statements. These means that what is obtainable on the financial statement of firm A is also obtainable on that of firm B. This means the financial statement of both firms can do the same functions in their respective firms.

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