Which of the Following Statements Are Incorrect About the Conceptual

question 31

Multiple Choice

Which of the following statements are incorrect about the Conceptual Framework's qualitative characteristic of verifiability?

• A) Direct verification is through direct observation such as counting cash.
• B) It means that different knowledgeable and independent observers will be able to reach complete agreement that the information is faithfully presented.
• C) Indirect verification requires checking the inputs of a model, formula or technique and recalculating the outputs using the same methodology.
• D) A consequence is that it may not be possible to verify budgeted information until a future period of time.

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Definitions:

Collection Time

The average period it takes for a business to receive payments owed by its customers after a sale has been made, often measured in days.

Mailing Days

The days that are considered when calculating the time it will take for mail and packages to be delivered.

Bank Deposit

Money placed into a banking institution for safekeeping, which can earn interest depending on the type of account.

Weighted Average Float

Weighted average float refers to the average time between when a check is deposited in a bank and when the funds are made available, weighted by the value of each check.