Which of the Following Statements Is False

question 121

Multiple Choice

Which of the following statements is false?

• A)The benefits of providing financial reporting information should outweigh the costs.
• B)An item is considered relevant if it has the ability to influence a decision.
• C)Information is considered to be faithfully represented when it is complete, neutral, and free from error.
• D)Accounting information should be reported in the national monetary unit with adjustment for inflation.

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Definitions:

Zero Net Difference

When the difference between expense and revenue equals zero; meaning that the values of both are equal; also called breakeven points when revenue and expenses are graphed on the same coordinate plane.

Demand Function

A mathematical formula that describes the relationship between the demand for a good and its price, along with other factors like income and prices of related goods.

Expense Functions

Mathematical expressions that calculate the total costs associated with producing a certain number of goods or services.

Revenue Functions

Mathematical models that describe how a company's revenue is related to the selling price of its products and the quantity of products sold.