Select the Incorrect Statement Regarding the Information Disclosed in Financial

Multiple Choice

Select the incorrect statement regarding the information disclosed in financial statements.

A) Financial statements should be detailed enough to answer any financial-related question an investor might have.
B) Some information disclosed in financial statements may be irrelevant to some users.
C) The costs of providing all possible information about a firm would be prohibitively high for the business.
D) When too much information is presented users may suffer from information overloaD.Financial statements can provide only highly summarized economic information. The costs to a company of providing excessively detailed information would be prohibitive. In addition, too much detail leads to information overload, the problem of having so much data that important information becomes obscured by trivial information.