Users of Financial Statements Should Consider Which of the Following

question 51

Multiple Choice

Users of financial statements should consider which of the following when evaluating the quality of accounting information?

• A) Economic faithfulness of accounting measurements and classifications.
• B) Reliability of the measurements.
• C) Reasonableness of the estimates made in applying GAAP or IFRS.
• D) All of these should be considered.

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Definitions:

Quantity

Quantity refers to the amount or number of a material or immaterial good or service.

Marginal Cost

The price of manufacturing one additional product or service unit.

Marginal Revenue

The increase in income from the sale of one extra unit of a good or service.

Marginal Revenue

The additional income from selling one more unit of a good; sometimes equals the price of the good.