Which of the Following Statements Is False

Multiple Choice

Which of the following statements is false?

A) A critical problem is associated with using present value on the financial statements is that it requires that both future cash flows and future interest rates be predicted.
B) In most cases, predicting the future cash flows associated with a particular asset or liability with a reasonable degree of confidence is almost impossible.
C) The predictions that management must make to apply present value are not too subjective for financial statements that are to be used by those outside the company.
D) Auditors are unwilling and unable to verify subjective present value judgments.