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:

Culturally Determined

Influenced or shaped by the customs, traditions, and social norms of a particular society or group.

Foucault

A French philosopher, social theorist, and historian of ideas, known for his critical studies of social institutions and his theories on power, knowledge, and disciplinary society.

Skepticism

A philosophical approach that questions the possibility of certainty in knowledge.

Two-World Assumption

The belief in a distinct separation between a physical, observable world and a non-physical, spiritual or conceptual realm.