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:

Investments

The process of distributing funds with the aim of earning returns or profits.

Positive

A term usually referring to values greater than zero, or a positive attitude or outcome in a broad sense.

Expected Value

The weighted average of all possible values of a random variable, with the weights being the probabilities of the outcomes.

Portfolio

A blend of financial contributions, featuring stocks, bonds, market commodities, ready money, and equivalents of cash, comprising also mutual funds and ETFs.