3.)Select the incorrect statement regarding the information disclosed in financi

Question

3.)Select the incorrect statement regarding the information disclosed in financial statements. (Points : 2) a. Financial statements should be detailed enough to answer almost any accounting question an investor might have. b. Some information disclosed in financial statements may be irrelevant to some users. c.The costs of providing all possible accounting information about a firm would be too prohibitive to the business. d. When too much information is presented users may suffer from information overload. 4.) Accrual accounting requires the use of many estimates, including: (Points : 2) a. uncollectible accounts expense. b. warranty costs. c. assets

Explanation / Answer

3 (a) FS should be detailed enough to answer almost any accounting question an investor might have. 4 (D) all of the above. Accrual require accountant to prepare the financial statements based on matching concept and this requires significant estimates to be made. Hope this helps!

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