Evaluate how the following transparency and accountability principles benefit stakeholders in financial reporting.
Understand the Problem
The question is asking to evaluate the benefits of transparency and accountability principles for stakeholders in financial reporting. It requires an analysis of how these principles impact the relationship with stakeholders and financial practices.
Answer
B. It builds trust with stakeholders by providing clear, accurate, and complete financial information.
The correct answer is B. It builds trust with stakeholders by providing clear, accurate, and complete financial information.
Answer for screen readers
The correct answer is B. It builds trust with stakeholders by providing clear, accurate, and complete financial information.
More Information
Transparency in financial reporting helps build trust by ensuring stakeholders receive the information they need to make informed decisions about a company's financial health and risks.
Tips
Avoid options that emphasize limiting information or focusing only on appearances, as these contradict the idea of transparency.
Sources
- How Transparent Financial Reporting Benefits Stakeholders - LinkedIn - linkedin.com
- Financial Reporting Standards: Transparency and Accountability - iriscarbon.com
