Regarding Relevant Nonfinancial Information,which of the Following Statements Is Incorrect

question 36

Multiple Choice

Regarding relevant nonfinancial information,which of the following statements is incorrect?

• A) Nonfinancial, or qualitative, factors play a role in managers' decisions and, as a result, can be relevant.
• B) Relevant qualitative information has the same characteristics as relevant financial information.
• C) Managers must always consider the potential quantitative and qualitative effects of their decisions.
• D) Qualitative factors can be ignored because these factors are difficult to measure.

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Definitions:

Revenue Recognition Policy

Guidelines used by a company to determine when revenue is recognized in the accounting period, crucial for accurate financial reporting.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Growth

An increase in size, amount, or degree, often used in the context of business or economic indicators like sales, revenues, or GDP.

Receivables

Receivables are amounts owed to a company by its customers or debtors for goods or services delivered but not yet paid for.