{"id":55973,"date":"2024-04-16T00:36:33","date_gmt":"2024-04-16T00:36:33","guid":{"rendered":"https:\/\/exam.pscnotes.com\/mcq\/?p=55973"},"modified":"2024-04-16T00:36:33","modified_gmt":"2024-04-16T00:36:33","slug":"read-the-following-statements-1-financial-statements-are-only-interim-reports-2-financial-statements-are-prepared-on-the-basis-of-realisable-values-3-the-preparation-of-financial-statements-is-n","status":"publish","type":"post","link":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-financial-statements-are-only-interim-reports-2-financial-statements-are-prepared-on-the-basis-of-realisable-values-3-the-preparation-of-financial-statements-is-n\/","title":{"rendered":"Read the following statements. 1. Financial statements are only interim reports. 2. Financial statements are prepared on the basis of realisable values. 3. The preparation of financial statements is not an ultimate aim. 4. Certain assumptions are necessary to prepare financial statements. Which of the following combinations consists of all true statements?"},"content":{"rendered":"<p>[amp_mcq option1=&#8221;1, 2 and 3&#8243; option2=&#8221;2, 3 and 4&#8243; option3=&#8221;1, 3 and 4&#8243; option4=&#8221;1, 2 and 4&#8243; correct=&#8221;option4&#8243;]<!--more--><\/p>\n<p>The correct answer is: D. 1, 2 and 4.<\/p>\n<p>Statement 1 is true because financial statements are only interim reports. They are not a complete picture of a company&#8217;s financial position, and they should not be used as the only basis for making investment decisions.<\/p>\n<p>Statement 2 is true because financial statements are prepared on the basis of realisable values. This means that they are based on the estimated future cash flows that a company expects to generate from its assets.<\/p>\n<p>Statement 3 is true because the preparation of financial statements is not an ultimate aim. It is a means to an end, and the ultimate aim is to provide information that is useful for decision-making.<\/p>\n<p>Statement 4 is true because certain assumptions are necessary to prepare financial statements. For example, companies must assume that they will continue to operate as a going concern, and they must estimate the useful lives of their assets.<\/p>\n<p>Therefore, the only combination of statements that consists of all true statements is D. 1, 2 and 4.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[amp_mcq option1=&#8221;1, 2 and 3&#8243; option2=&#8221;2, 3 and 4&#8243; option3=&#8221;1, 3 and 4&#8243; option4=&#8221;1, 2 and 4&#8243; correct=&#8221;option4&#8243;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-55973","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.2 (Yoast SEO v23.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Read the following statements. 1. Financial statements are only interim reports. 2. Financial statements are prepared on the basis of realisable values. 3. The preparation of financial statements is not an ultimate aim. 4. Certain assumptions are necessary to prepare financial statements. Which of the following combinations consists of all true statements?<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-financial-statements-are-only-interim-reports-2-financial-statements-are-prepared-on-the-basis-of-realisable-values-3-the-preparation-of-financial-statements-is-n\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Read the following statements. 1. Financial statements are only interim reports. 2. Financial statements are prepared on the basis of realisable values. 3. The preparation of financial statements is not an ultimate aim. 4. Certain assumptions are necessary to prepare financial statements. Which of the following combinations consists of all true statements?\" \/>\n<meta property=\"og:description\" content=\"[amp_mcq option1=&#8221;1, 2 and 3&#8243; option2=&#8221;2, 3 and 4&#8243; option3=&#8221;1, 3 and 4&#8243; option4=&#8221;1, 2 and 4&#8243; correct=&#8221;option4&#8243;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-financial-statements-are-only-interim-reports-2-financial-statements-are-prepared-on-the-basis-of-realisable-values-3-the-preparation-of-financial-statements-is-n\/\" \/>\n<meta property=\"og:site_name\" content=\"MCQ and Quiz for Exams\" \/>\n<meta property=\"article:published_time\" content=\"2024-04-16T00:36:33+00:00\" \/>\n<meta name=\"author\" content=\"rawan239\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"rawan239\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Read the following statements. 1. Financial statements are only interim reports. 2. Financial statements are prepared on the basis of realisable values. 3. The preparation of financial statements is not an ultimate aim. 4. Certain assumptions are necessary to prepare financial statements. Which of the following combinations consists of all true statements?","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/exam.pscnotes.com\/mcq\/read-the-following-statements-1-financial-statements-are-only-interim-reports-2-financial-statements-are-prepared-on-the-basis-of-realisable-values-3-the-preparation-of-financial-statements-is-n\/","og_locale":"en_US","og_type":"article","og_title":"Read the following statements. 1. Financial statements are only interim reports. 2. Financial statements are prepared on the basis of realisable values. 3. 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