Which of the Following Is Not a Limitation of Financial

question 48

Multiple Choice

Which of the following is not a limitation of financial statements?

• A)It is possible that two firms operating in the same industry may follow different accounting methods for the exact same transaction.
• B)Full disclosure requires that the financial statements and notes include all necessary information to prevent a reasonably astute user of the financial statements from being misled.
• C)Financial statements are not adjusted to show the impact of inflation.
• D)Financial statements do not reflect opportunity cost, which is an economic concept relating to income forgone because an opportunity to earn income was not pursued.