I – Non-adjusting event falling after date of authorization of FS issuance may or may not be disclosed. II – It is recommended by the Standard that at most, only 10 segments should be determined as reportable as reporting beyond this limit would result to information that is too detailed. III – The effect of recording a 100% share dividend would be to decrease the current ratio, decrease working

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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49

Analyze the following:

I – Non-adjusting event falling after date of authorization of FS issuance may or may not be disclosed.

II – It is recommended by the Standard that at most, only 10 segments should be determined as reportable as reporting beyond this limit would result to information that is too detailed.

III – The effect of recording a 100% share dividend would be to decrease the current ratio, decrease working capital and decrease book value per share.

Given these, we can conclude that:

Group of answer choices

Only statements I and II are false.

Statement III is not false.

Only statements II and III are true.

Statement II is true.

 

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