Which of the Following Statements Is not True

question 157

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 of 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 decisions.

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Definitions:

Raw Materials

Basic materials that are used in the production process as inputs for manufacturing finished goods.

Indirect Materials

Components or supplies used in the production process that cannot be directly traced to a finished product.

Manufacturing Overhead

All indirect costs associated with manufacturing a product, excluding direct material and direct labor costs.

Raw Materials

The unprocessed materials used in manufacturing to produce goods, ranging from metals and plastics to food ingredients and textiles.