Which of the Following Statements Is False with Respect to the Qualitative

question 179

Multiple Choice

Which of the following statements is false with respect to the qualitative characteristics of useful accounting information?

• A)Comparability is concerned with different companies using the same accounting methods; whereas, consistency is concerned with a single company using the same accounting methods over time.
• B)Trade-offs are often necessary in evaluating relevant versus reliable information.
• C)All external and internal events must be fully disclosed in the accounting system.
• D)The full disclosure policy should be followed in all situations that would made a difference to financial statement users.

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Definitions:

Good Trait

An inherent quality or characteristic in an individual considered to be morally right, beneficial, or advantageous.

High Conscientiousness

A personality trait characterized by thoroughness, carefulness, and efficiency.

Friendliness

A trait characterized by being kind, pleasant, and supportive towards others.