Jackson Cement Corporation Reported $35 Million for Sales When It

question 162

Multiple Choice

Jackson Cement Corporation reported $35 million for sales when it only had $20 million of actual sales. Which of the following qualities of useful information has Jackson most likely violated?

• A) Comparability
• B) Relevance
• C) Faithful representation
• D) Consistency

---

Definitions:

Corporate Policy

Guidelines and rules that govern how a corporation operates, including its principles, objectives, and procedures designed to achieve its goals.

Capital Structure

The mix of various forms of financing used by a firm to fund its overall operations and growth, including debt, equity, and any other financing sources.

Quorum

The minimum number of members required to be present to make the proceedings of a meeting valid.

Liability for Negligence

Legal responsibility imposed on a person or entity for harm caused by careless or reckless actions resulting in injury to another.