Which of the Following Statements Is Incorrect

question 100

Multiple Choice

Which of the following statements is incorrect?

• A) An adjusted trial balance shows the account balances after they have been revised to reflect the effects of end-of-period adjustments.
• B) Interim financial reports can be based on one-month or three-month accounting periods.
• C) The fiscal year is any 12 consecutive months used by a business as its annual accounting period.
• D) Property, plant, and equipment are long term assets.
• E) The cash basis of accounting is consistent with GAAP.

---

Definitions:

Crystallized Intelligence

Intelligence that reflects both knowledge gained through experience and the ability to use that knowledge.

Fluid Intelligence

Intelligence that reflects the ability to process information, particularly in novel or complex circumstances.

Mental Set

A psychological tendency to approach problems in a specific way, using methods that have been successful in the past.

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering the ability to think of alternative uses.