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:

Null Hypothesis

The hypothesis in statistical analysis that proposes there is no significant difference or relationship between specified populations, any observed difference being due to sampling or experimental error.

Distribution

A statistical term describing the way values of a variable are spread or dispersed across a range.

Significance Level

A threshold chosen by the researcher to denote the probability below which a result is considered statistically significant, indicating that the observed result would be unlikely under the null hypothesis.

Kruskal-Wallis Test

A nonparametric statistical test used to compare three or more groups on a continuous or ordinal outcome without assuming a normal distribution among the groups.