Which Statement Is Not Correct

question 45

Multiple Choice

Which statement is not correct?

• A)Accruals involve uncertainty about future transactions and events.
• B)Companies must use the same accounting estimates year-over-year in preparing statements.
• C)A company can change its accounting policies if it provides more relevant information.
• D)Higher earnings quality provides users with more decision useful financial statements.

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Definitions:

Two-Stage Allocation Process

A method used in cost accounting to assign indirect costs to products or services, involving an initial allocation to departments and a subsequent allocation to specific products or services.

Cost of Activities

The expenses related to specific activities or projects within a company.

Support Department Cost Allocations

The distribution of overheads and expenses from support departments to operational departments based on criteria reflecting their use of support services.

Modern Manufacturing Environment

Refers to the current state of manufacturing characterized by advanced technologies, lean production methods, and increased emphasis on sustainability.