Which of the Following Statements Is Not True

question 3

Multiple Choice

Which of the following statements is not true?

• A)Comparability means using the same accounting principles from year to year within a company.
• B)Reliability of information gives assurance that the information is free of error or bias.
• C)Relevant accounting information must be capable of making a difference in the decision.
• D)The FASB concluded that the overriding criterion by which accounting choices can be judged is decision usefulness.

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Definitions:

Present Value

The worth at present of an upcoming monetary sum or flow of cash, given a predetermined return rate.

Maintenance Payments

Periodic payments made for the upkeep or support, often legally mandated in cases like alimony or child support.

Compounded Quarterly

The process of calculating interest added to the principal balance of an investment or loan every three months, leading to interest earned on interest.

Present Value

The contemporary valuation of a future money sum or cash flow series, based on a defined rate of interest.