Select the Incorrect Statement Regarding the Information Disclosed in Financial

question 82

Multiple Choice

Select the incorrect statement regarding the information disclosed in financial statements.

• A)The costs of providing all possible information about a firm would be prohibitively high for the business.
• B)Some information disclosed in financial statements may be irrelevant to some users.
• C)Financial statements should be detailed enough to answer any financial-related question an investor might have.
• D)When too much information is presented users may suffer from information overload.

---

Definitions:

Construct Validity

The degree to which a test measures what it claims to be measuring, specifically the ability of a measurement tool to actually measure the theoretical construct it intends to measure.

Criterion-related Validity

The extent to which a test's scores correlate with another measure or outcome that it is theoretically expected to predict.

Content Validity

The degree to which a test or measure reflects the entire range of material it is supposed to be testing.

Content Validity

The extent to which a test or questionnaire accurately covers or represents the specific content it aims to measure.