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.

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Definitions:

Pretentious

Characterized by an attempt to seem more important or knowledgeable than one actually is, often by affecting greater importance or merit.

Preformed Schemas

Cognitive structures or frameworks that help individuals organize and interpret information, often based on past experiences and societal norms.

Stereotypes

Oversimplified standardized images or ideas held by individuals about members of a particular group.

Political Liberal

An individual who favors progressive political policies, advocating for social equality, and typically supporting individual rights and freedoms.