Which of the Following Is NOT True Regarding Changes in Accounting

question 32

Multiple Choice

Which of the following is NOT true regarding changes in accounting information that external users desire?

• A) Users generally need more nonfinancial information
• B) Users generally desire more objective and verifiable information
• C) Users generally desire less detailed information
• D) Users generally desire information more frequently than at year-end

---

Definitions:

Internal Growth Rates

The maximum rate at which a company can expand using only internal financial resources without resorting to borrowing or seeking new equity investment.

External Financing Needs (EFN)

The amount of funding a business requires from external sources to finance its planned growth or expansion activities.

Negative EFN

External Financing Needed; a scenario where a negative value indicates a surplus of funds, implying no external financing is required for growth or operations.

Retention Ratio

The proportion of net income that is retained in the business rather than paid out as dividends, indicating reinvestment rate.