GAAP leads to better financial information and is helpful for an organization or government in which of the following ways?

GAAP leads to better financial information and is helpful for an organization or government in which of the following ways?

It helps governments better demonstrate to their citizens and bond holders their stewardship over their governments resources.

It ensures the Rules of Professional Conduct are followed.

It ensures the Securities and Exchange Commission will approve the financial statements.

It helps non-profits increase amounts they receive from donations.

Which of the following is not a reason why a privately held company would choose to use a GAAP basis of accounting?

Which of the following is not a reason why a privately held company would choose to use a GAAP basis of accounting?

If a private company wants to sell their stock for the highest price possible.

If a private company wants to provide credibility to their financial statements.

If a private company seeks a certain level of outside capital GAAP basis financial statements become a necessity.

If a private company wants to go public they would use GAAP basis of accounting so investors will have confidence in the financial statements.