Which of the Following Represents a Contradiction,rather Than a Trade-Off

question 28

Multiple Choice

Which of the following represents a contradiction,rather than a trade-off that needs to be balanced?

• A) Information may be reliable, but the time taken to ensure its reliability may result in it being potentially irrelevant.
• B) Determining whether the benefits derived from information are greater than the costs to produce it.
• C) The argument for neutrality and faithful representation; but standard-setters consider the economic consequences of standards.
• D) Information may be relevant, but the data may be so unreliable that it could be potentially misleading.

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Definitions:

Registration of Securities

The process of filing the necessary documents with the Securities and Exchange Commission before securities can be offered for sale to the public.

Financial Soundness

An indication that an entity is stable, solvent, and has the capability to meet its financial obligations.

EDGAR

Stands for Electronic Data Gathering, Analysis, and Retrieval system, a database maintained by the U.S. Securities and Exchange Commission for corporate filings.

Automated Collection

The use of computerized systems to gather debts or receivables efficiently, often used by financial institutions and collection agencies.