Which of the following statements regarding the information disclosed in financial statements is incorrect?
A) The costs of providing all possible information about a firm would be prohibitively high for the business.
B) Some information disclosed in financial statements may be irrelevant to some users.
C) Financial statements should be detailed enough to answer any financial-related question an investor might have.
D) When too much information is presented, users may suffer from information overload.

Question

Quizplus · Accepted Answer

While financial statements should provide important information, they cannot possibly answer every possible question an investor might have. They are intended to provide a general picture of a company's financial health, rather than to provide exhaustive details about every aspect of the business.

Which of the Following Statements Regarding the Information Disclosed in Financial