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Response Letter To Mr Beresford

149 Words1 Pages
In the response letter to Mr. Beese, Mr. Beresford explains what he means by “truth in accounting.” He compares the phrase that Mr. Beese, “the truth will set investors free” with “truth in securities” laws. In accounting, financial statements will reveal how the company is doing without hiding the real facts. It helps the public to understand about a company’s financial situation and helps makes final decisions. When Mr. Beresford talks about “neutrality of financial statements” he explains how even though a financial statement reflects a company’s finance it doesn’t reflect that all is well, that a company must keep working to achieve a goal. These ideas are supported in the FASB conceptual framework for example, providing the four general-purpose

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