Which One of the Following Statements Is Not Correct

Multiple Choice

Which one of the following statements is not correct?

A) The objective of general financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity.
B) While financial accounting presents information about what has happened in the past, cost and management accounting is very much concerned with both the present and the future and how accounting information can be used for short-term decision making and longer-term planning.
C) Understandability assumes that readers of financial reports have a reasonable knowledge of business and economic activities in order to make sense of what they are presented with.
D) Accounting summarizes narrative data relating to past events and presents this data as information to managers and other interested parties as a basis for both decision making and control purposes.