Financial accounting information is characterized by all of the following except:
A)It is historical in nature.
B)It results from inexact and approximate measures.
C)It is factual,so it does not require judgment to prepare.
D)It is enhanced by management's explanation.

Question

Quizplus · Accepted Answer

Financial accounting information requires significant judgment and estimation in order to prepare, particularly in areas such as depreciation, inventory valuation, and bad debt expense. Therefore, choice C is not accurate.

Financial Accounting Information Is Characterized by All of the Following