Which of the Following Is NOT a Risk Incurred by Describing

question 2

Multiple Choice

Which of the following is NOT a risk incurred by describing services in words alone?

• A) Oversimplification
• B) Incompleteness
• C) Subjectivity
• D) Biased interpretation
• E) Transformation

---

Definitions:

Financial Statement

A written report which quantitatively describes the financial health of a company, including balance sheets, income statements, and cash flow statements.

Normal Balance

The side of the account (debit or credit) on which increases to the account are recorded.

Gross Method

An accounting practice where invoice transactions are recorded at their full, or gross, amounts before any discounts are applied.