Asked by
Maresa Gibbons
on Dec 16, 2024Verified
Which of the following statements is not true?
A) Comparability means using the same accounting principles from year to year within a company.
B) Faithful representation is the quality of information that gives assurance that it is free from error.
C) Relevant accounting information must be capable of making a difference in the decision.
D) The primary objective of financial reporting is to provide financial information that is useful to investors and creditors for making decision.
Comparability
A qualitative characteristic of financial information that allows stakeholders to identify similarities and differences between two or more sets of economic facts.
Faithful Representation
A fundamental qualitative characteristic in accounting, ensuring that financial information accurately reflects the economic events it purports to represent.
Financial Reporting
Generating documents that unveil the financial situation of a company to stakeholders, including managers, investors, and regulatory authorities.
- Comprehend the ideas of relevance and accurate depiction in financial statements.
- Comprehend the features of accounting data and the significance of uniform application.
Verified Answer
GC
Learning Objectives
- Comprehend the ideas of relevance and accurate depiction in financial statements.
- Comprehend the features of accounting data and the significance of uniform application.