A Statement of Opinion Will Only Be Misleading or Deceptive

question 17

Multiple Choice

A statement of opinion will only be misleading or deceptive under s 18 of the Australian Consumer Law if:

• A)It contains a representation of fact that is misleading or deceptive.
• B)It is negligently made.
• C)It is based on a distortion or exaggeration of the truth.
• D)It contains expert opinion, or is advanced by an expert.

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Definitions:

Financial Statements

Financial statements are formal records of the financial activities and condition of a business, person, or other entity, providing an overview of a financial situation over a specified period.

Matching Principle

An accounting principle that requires expenses to be recorded and recognized in the same period as the revenues they helped to generate.

Expenses

Costs incurred in the normal course of business to generate revenues, including costs such as rent, salaries, and utility expenses.

Related Revenue

Income generated from sales or transactions that are directly related to the core operations or primary activities of a business.