Which of the following statement is true?
Statement 1: Financial statements are prepared on the basis of accounting principles.
Statement 2: Any changes in accounting principles or method will affect the utility of the financial statements.

A. 1 is true, but 2 is false

B. 2 is true, but 1 is false

C. Both 1 and 2 are true

D. Both 1 and 2 are false

Answer: Option C