Which of the Following Statements Is Not Correct

question 9

Multiple Choice

Which of the following statements is not correct?

• A) Requirements for special purpose financial reports are contained in AASB accounting standards.
• B) The IASB's Conceptual Framework identifies potential investors as a primary user group of general purpose financial reports.
• C) All general purpose financial reports are prepared in accordance with accounting standards.
• D) SAC 1 Definition of the Reporting Entity defines a general purpose financial report as 'a report intended to meet the information needs of users who are unable to command the preparation of reports tailored to satisfy their information needs'.

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Definitions:

Age Group

A classification of people based on their age, often used in demographics and marketing.

Number of Days

Often refers to the time period used in finance and accounting to calculate interest, production times, or deadlines.

Balance Sheet Approach

A method focusing on a company's balance sheet to assess its financial condition by analyzing assets, liabilities, and equity at a specific point in time.

Allowance Account

A contra-asset account used to estimate future uncollectible debts from customers, reducing the total amount of outstanding receivables.