Which of the Following Statements Is Not True

question 124

Multiple Choice

Which of the following statements is not true?

• A) Comparability means using different accounting principles from year to year within a company.
• B) Faithful representation means information must be neutral, complete, and free from error.
• C) Relevant accounting information must be capable of making a difference in a user's decision.
• D) For accounting information to be relevant, it must have timeliness.

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Definitions:

Notes Payable

Written promises to pay a specified sum of money, typically to a lender, by a certain date.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Normal Balance

The usual balance side (debit or credit) of an account, determined by the type of account, which helps in maintaining the double-entry accounting system.

Temporary/Permanent

Refers to the nature of differences affecting financial reporting; temporary differences resolve over time, whereas permanent differences do not.