Which Statement Would Not Be Found in a Directors' Declaration

question 27

Multiple Choice

Which statement would not be found in a directors' declaration?

• A) That the financial statements and notes give a true and fair view.
• B) That the financial statements are free from material misstatement whether due to fraud or error
• C) That in the directors' opinion there are reasonable grounds to believe that the company will be able to pay its debts as and when they fall due.
• D) That in the directors' opinion the financial statements and notes are in accordance with the law.

---

Definitions:

Brown Bears

Large omnivorous mammals found across parts of northern Eurasia and North America, known for their thick fur and powerful build.

Markup

The amount added to the cost price of goods to cover overhead and profit; calculated as a percentage of the cost.

Net Sales

The amount of sales generated by a company after deducting returns, allowances for damaged or missing goods, and discounts.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.