Which of the Following Statements Is INCORRECT in Relation to the Preparation

question 11

Multiple Choice

Which of the following statements is INCORRECT in relation to the preparation of financial statements?

• A) General Purpose Financial Statements must be prepared in accordance with accounting standards.
• B) General Purpose Financial Statements are reports intended to meet the information needs common to users who are unable to command the preparation of reports tailored so as to specifically meet all their information needs.
• C) The sole objective of a General Purpose Financial Statement is to serve an economic decision making objective.
• D) The objective of a General Purpose Financial Statement is to provide information useful to users for making and evaluating decisions about the allocation of scarce resources.

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Definitions:

Standard of Deferred Payment

A function of money that allows for goods and services to be paid for at a future date.

M1

Refers to a category of the money supply that includes all physical money, such as coins and currency, as well as demand deposits, checking accounts, and negotiable order of withdrawal (NOW) accounts.

Passbook Savings Account

A type of savings account where transactions are recorded in a physical booklet, allowing depositors to track account activity manually.

Checking Accounts

Banking accounts that allow depositors to write checks and use electronic debit to access funds for transactions and withdrawals.