Which Statement Relating to the Conceptual Framework's Concept of Understandability

question 30

Multiple Choice

Which statement relating to the Conceptual Framework's concept of understandability that is not true?

• A) Information about complex matters should be included in the reports if it is considered relevant.
• B) It is expected that users of financial statements will be willing to study the information with reasonable diligence.
• C) In preparing financial statements it should be assumed that users possess very little knowledge accounting.
• D) Every attempt should be made to communicate information in the most effective manner.

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Definitions:

Openness to Experience

A personality trait characterized by an appreciation for art, emotion, adventure, unusual ideas, imagination, curiosity, and variety of experience.

Conscientiousness

A personality trait characterized by diligence, carefulness, and a high level of organization and responsibility.

Emotional Stability

A personality trait signifying the consistency of an individual's mood and temperament; opposite of high neuroticism.

Agreeableness

A personality trait characterized by kindness, warmth, cooperation, and a tendency to avoid conflict.