Which of the Following Statements Is Incorrect

question 36

Multiple Choice

Which of the following statements is incorrect?

• A) Current assets are those assets that are realised or consumed within an entity's operating cycle.
• B) For entities with diverse operations, such as retail and banking activities, a mixed basis of presentation may be appropriate.
• C) An entity's operating cycle is usually 12 months but may be longer than 12 months after the reporting period.
• D) An entity is permitted to classify deferred tax assets as current assets.

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Definitions:

Situational Factors

External and internal factors that can influence the outcomes of decision-making processes or behaviors in organizational settings.

Neuroticism

A personality trait characterized by a tendency towards anxiety, depression, self-doubt, and other negative feelings.

Recreational Activities

Leisure activities or programs provided by an organization aiming to improve employee well-being, team cohesion, and overall morale.

Role Perception Problem

Occurs when there is a discrepancy or misunderstanding regarding the expectations or responsibilities of a specific role within an organization.