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:

Capital Investment

Money expended by a business to purchase or improve tangible assets like land, factories, or machinery.

Investment Funds

These are pooled funds from various investors used to acquire securities and other investment assets, managed by financial professionals.

Present Value Index

An index computed by dividing the total present value of the net cash flow to be received from a proposed capital investment by the amount to be invested.

Competing Proposals

Proposals or bids from different entities aimed at securing a contract or project, often requiring evaluation to select the most advantageous.