Which of the Following Statements Is Not True

question 168

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) Faithful representation is the quality of information that gives assurance that it is free from error.
• C) Relevant accounting information must be capable of making a difference in the decision.
• D) The primary objective of financial reporting is to provide financial information that is useful to investors and creditors for making decision.

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Definitions:

Deposit

An amount of money placed into an account or given to someone as a partial payment or security for the purchase of something.

Check Register

A record book or digital log used to track checks written, deposits made, and current balance of a bank account.

Cash Balance

The amount of currency and liquid instruments in a company's possession that can be readily used for transactions.

Check

A written order directing the bank to pay a certain sum to a designated party.