Which of the Following Is Not a Characteristic or Limitation

question 2

Multiple Choice

Which of the following is not a characteristic or limitation of the kind of information that financial reporting by business enterprises can provide?

• A) The information results in approximate, rather than exact, measures.
• B) The information largely reflects the financial effects of transactions that have already happened.
• C) The information is provided and used at a cost.
• D) All of these are characteristics or limitations of the kind of information that financial reporting by business enterprises can provide.

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Definitions:

Necessity

A good or service that is essential for survival and basic well-being, such as food or shelter.

Price-Inelastic

Describes a situation where the demand for a product or service is relatively unaffected by changes in its price.

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Price Elasticity

An indicator of the sensitivity of demand for a product to variations in its price, represented as a percentual change.