Which of the Following Statements Is False

question 121

Multiple Choice

Which of the following statements is false?

• A)The benefits of providing financial reporting information should outweigh the costs.
• B)An item is considered relevant if it has the ability to influence a decision.
• C)Information is considered to be faithfully represented when it is complete, neutral, and free from error.
• D)Accounting information should be reported in the national monetary unit with adjustment for inflation.

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Definitions:

Statement Of Cash Flows

A financial statement that details the inflows and outflows of cash for a business over a specific period, highlighting operating, investing, and financing activities.

Significant Noncash

Transactions or activities that have a significant impact on an entity's financial statements without involving cash flows.

Statement Of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Decision Makers

Individuals or groups responsible for making choices that can have wide-ranging impacts on an organization or portion of it.