According to Arthur Levitt,a Former Chair of the U

Multiple Choice

According to Arthur Levitt,a former chair of the U.S.Securities and Exchange Commission (SEC) ,what has resulted from the degree of flexibility that currently exists within GAAP?

A) It has been a great benefit to shareholders, because it gives them greater access to financial information than would be possible if rules were less flexible.
B) It allows managers to use creative accounting that makes their company's financial results look better than they really are.
C) It makes accounting statements more consistent and comparable.
D) It is one of the greatest strengths of the accounting system because it allows managers the ability to quickly adapt to changing market conditions.