Which of the Following Statements Regarding the Information Disclosed in Financial

question 77

Multiple Choice

Which of the following statements regarding the information disclosed in financial statements is not true?

• A)The costs of providing all possible information about a firm would be prohibitively high for the business.
• B)Some information disclosed in financial statements may be irrelevant to some users.
• C)Financial statements should be detailed enough to answer any financial-related question an investor might have.
• D)When too much information is presented users may suffer from information overload.

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Definitions:

Agriculture Industry

The sector of the economy that produces food, fiber, and other goods by the systematic cultivation of plants and husbandry of animals.

First World War

A global conflict that occurred from 1914 to 1918, involving many of the world's powers and marking significant political, social, and military changes.

Dawes Plan

An economic plan devised in 1924 to solve the problem of World War I reparations that Germany had to pay, which aimed to reduce the reparations amount and reorganize the Reichsbank, while also securing loans from the United States to Germany.

Reparations Payments

Reparations payments are compensations made by a defeated country after a war to the victors or to civilians who suffered losses, as a way of acknowledging damages and responsibility for the conflict.