Which of the Following Is Not a True Statement

question 8

Multiple Choice

Which of the following is not a true statement?

• A)Comparability refers to accounting for similar transactions similarly and different circumstances differently.
• B)Comparability refers to comparing alternatives in order to make a decision.
• C)Comparability is an inherent quality of accounting numbers in the same sense that relevance and reliability are.
• D)Uniformity influences comparability.

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Definitions:

Ratification Manifest

The overt expression or demonstration of approval or confirmation of an act or agreement, often legally required for ratification.

Material Facts

Information that could influence the decision-making process of a person or entity, considered significant in the context of legal and financial transactions.

Apparent Authority

A legal doctrine allowing a third party to rely on the representation of an agent that they have the authority to act on behalf of a principal, even if the agent lacks actual authority.

Actual Authority

The explicit power granted by a principal to an agent to conduct specific transactions or activities on the principal's behalf.