Financial statement users often receive unreliable financial information from companies. Which of the following is not a common reason for this?
A) Complex exchange transactions.
B) Voluminous data.
C) Remoteness of information.
D) Each of these choices is a common reason for unreliable financial information.

Question

Quizplus · Accepted Answer

Each of the given options is a common reason for unreliable financial information. Complex exchange transactions can be difficult to understand and may be inaccurately recorded. Voluminous data can cause errors in recording or reporting, and may also make important information difficult to discern. Remoteness of information refers to the fact that the information being reported may be distant or not easily accessible, which can lead to errors or omissions. Therefore, all of these factors are commonly associated with unreliable financial information.

Financial Statement Users Often Receive Unreliable Financial Information from Companies