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.

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Definitions:

Psychological Needs

Fundamental human motivations that drive behavior, such as the need for esteem, belonging, and self-actualization.

Psychological Needs

Fundamental human motivations that encompass aspects like autonomy, competence, and relatedness, influencing behavior and well-being.

Consumer Decision Process

The steps that consumers go through before, during, and after making a purchase, including problem recognition, information search, evaluation of alternatives, purchase, and post-purchase evaluation.

Internal and External

Refers to factors or influences within an organization (internal) and outside influences affecting an organization (external).