Which of the Following Statements Concerning Accounting Standards Is Incorrect

question 42

Multiple Choice

Which of the following statements concerning accounting standards is incorrect?

• A) Accounting standards only apply to companies.
• B) Accounting standards guide the preparation of reliable financial reports.
• C) Accounting standards evolve with changes in business requirements.
• D) Accounting standards improve the comparability of financial reports.

---

Definitions:

Insanity Defense

A legal defense strategy in which the defendant claims they were incapable of understanding the nature or wrongfulness of their actions due to mental illness at the time of the crime.

Acts of Passion

Behaviors driven by strong emotions or desires, often without consideration for the consequences.

Durham Rule

Legal principle stating that the presence of a mental disorder is sufficient to absolve an individual of responsibility for a crime.

American Law Institute (ALI) Rule

A guideline used in some jurisdictions for determining legal insanity, which considers whether a defendant lacks the capacity to understand the wrongfulness of their actions.