Which of the Following Statements Is False

question 100

Multiple Choice

Which of the following statements is false?

• A) Information for some costs cannot easily be obtained from the accounting information system.
• B) Useful cost information is rarely available from the accounting information system.
• C) The accounting system design affects the availability of useful cost information.
• D) The nature of cost information affects its usefulness for decision-making.

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Definitions:

Legal Capital

The portion of a company's equity that cannot legally be distributed to the shareholders as dividends, typically the par value of issued shares.

Corporate Creditors

Individuals or institutions owed money by a corporation, typically as a result of lending money or providing goods and services on credit.

IFRS

International Financial Reporting Standards are accounting guidelines created by the International Accounting Standards Board, increasingly adopted worldwide for drafting financial statements of public companies.

Reserves

Funds set aside by a company to cover future obligations, losses, or unforeseen expenses.