The CFA's Comprehensive Business Reporting Model Argues That Certain Key

question 15

Multiple Choice

The CFA's Comprehensive Business Reporting Model argues that certain key weaknesses in the current financial reporting model exist.The weaknesses include all of the following except

• A)current financial statements are not presented in a structure that is useful to investors
• B)current financial statements do not present sufficient information to enable investors to make effective decisions.
• C)current financial statements contain inaccurate measurements
• D)investors must resort to estimates and best guesses to generate the information they need

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Definitions:

Organizational Structure

The system that outlines how activities are directed in order to achieve the goals of an organization, including rules, roles, and responsibilities.

Technology

The application of scientific knowledge for practical purposes, especially in industry and improvements in tools, machines, systems, and devices.

Organizational Structure

The way in which an organization arranges its hierarchy, roles, and responsibilities to achieve its objectives.

Departments

Units or divisions within an organization, each handling specific tasks or functions.