Which of the Following Statements Is NOT True

question 34

Multiple Choice

Which of the following statements is NOT true?

• A) Consistency 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 all amounts reported are known with certainty.
• C) Relevant accounting information must be capable of making a difference in a decision.
• D) Accounting standards for private entities has four principal qualitative characteristics.

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Definitions:

Intangible Asset

An asset that lacks physical substance, representing value due to legal or competitive rights (e.g., patents, trademarks).

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, often referred to as shareholders' equity or owners' equity.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

No-Par Common Stock

No-Par common stock is stock issued without a par value, meaning its value is determined by the price investors are willing to pay in the market, rather than a set face value.