Which of the following are correct with respect to information contained in financial statements?

Multiple Choice

• Information asymmetry occurs when management has access to more and better information than do people outside the company.

• Financial statements cannot solve the issue of information asymmetry.

• Financial statements help solve the issue of information asymmetry.

• Financial statements help solve the issue of information asymmetry which is when management has access to more and better information than do people outside the company.