Which of the Following Statements Regarding Fair Presentation Is FALSE

question 43

Multiple Choice

Which of the following statements regarding fair presentation is FALSE?

• A)Fair presentation also requires the financial statements to adequately disclose the significant accounting policies applied so that users can understand the effect of transactions and events on the information.
• B)The auditor assesses whether the terminology used and the titles of financial statements are appropriate and understandable.
• C)The final analysis considers the qualitative aspects of the accounting used.
• D)The final analysis does not consider indications of management bias in selecting accounting policies and making accounting estimates.

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Definitions:

Long Run

A period in economics during which all factors of production and costs are variable, allowing full adjustment to any change in the economic environment.

Break-Even Point

This is the point at which total revenues equal total costs, and the business or project makes neither a profit nor a loss.

Firm's Output

The quantity of goods or services produced by a firm within a given time period.

Short Run

A period in economics where at least one factor of production is fixed and cannot be changed.