A Limitation of the Statement of Financial Position in Portraying

question 29

Multiple Choice

A limitation of the statement of financial position in portraying the financial position of an entity is:

• A)items which cannot be measured in money are not included.
• B)the historical cost approach means that assets are not shown at their estimated market values.
• C)there is no adjustment to values for inflation.
• D)All of the above are limitations.

---

Definitions:

Culture

The beliefs or practices of a certain group of people.

Acculturation

Acculturation describes the process of cultural change and psychological adjustment that results following the meeting between cultures, often involving the adoption of elements of one culture by members of another.

Biological Attributes

Traits, characteristics, or features determined by genetic inheritance or biological processes.

Values

Principles or standards of behavior that are regarded as important in a society or group.