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:

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Bond Portfolios

Collections of bonds held by investors or institutions, designed to achieve certain financial goals while managing risk and return.

Indexing

The investment strategy of replicating the performance of a market index, often through passive fund management.

Duration

A measure of the sensitivity of the price of a bond or a fixed income portfolio to changes in interest rates.