Which of These Statements Is Correct

question 25

Multiple Choice

Which of these statements is correct?

• A) Simplified financial reports will always be the most understandable
• B) A relevant and reliable item will always be material
• C) Relevance and reliability can never be in conflict
• D) It is apparent from the Framework that general purpose financial reports are addressed to users with a reasonable knowledge of business and economic activities

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Definitions:

Revenue From Contracts

Income that a company recognizes from the fulfillment of performance obligations specified in contracts with its customers.

Net Patient Service Revenue

The total revenue derived from patient services provided by a healthcare institution, net of any allowances for discounts and adjustments.

Third Party Payors

Entities (usually insurance companies or government agencies) that pay for healthcare services on behalf of patients.

Contractual Adjustments

Adjustments made to the gross amount of charges for services provided, primarily in healthcare, based on pre-negotiated agreements with payers or insurers.