Which of the following is not considered a deficiency of the statement of financial position?
A)The amount of discretion in recording some transactions.
B)The lack of recognition of inflation.
C)The disclosure of assets and the claims against such assets.
D)The conflict between relevant and reliable information.

Question

Quizplus · Accepted Answer

The disclosure of assets and the claims against such assets is a fundamental feature of the statement of financial position, and therefore cannot be considered a deficiency. A lack of recognition of inflation is a deficiency, as it can distort the true value of assets and liabilities over time. The amount of discretion in recording some transactions and the conflict between relevant and reliable information can also be considered deficiencies in the statement of financial position.

Which of the Following Is Not Considered a Deficiency of the Statement