Which of the Following Statements Is Incorrect

question 111

Multiple Choice

Which of the following statements is incorrect?

• A) A major consideration in developing an accounting system is cost effectiveness.
• B) When an accounting system is designed no consideration needs to be given to the needs and knowledge of the various users.
• C) The accounting system should be able to accommodate a variety of users and changing information needs.
• D) To be useful information must be understandable relevant reliable timely and accurate.

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Definitions:

Trust Instrument

A legal document that creates a trust, specifying the terms, trustees, beneficiaries, and purpose.

Trust's Purpose

The specific objectives or intentions for which a trust is established, guiding how the trust's assets are to be managed and used.

Constructive Trust

An equitable remedy resembling a trust, imposed by a court in order to benefit a party that has been unjustly enriched at another's expense, even though no actual trust has been created by the parties.

Legal Title

The formal right of ownership of property, recognized and protected by law, which may not necessarily entail the possession or use of the property.