Question #3
Reading: Reading 12 Evaluating Quality of Financial Reports
PDF File: Reading 12 Evaluating Quality of Financial Reports.pdf
Page: 1
Status: Correct
Correct Answer: B
Question
Errors that affect multiple financial statement elements are most likely to arise from:
Answer Choices:
A. classification issues
B. measurement and timing issues
C. compound issues
Explanation
Measurement and timing issues typically affect multiple financial statement elements
while classification issues typically affects categorization of a specific element in a financial
statement.