Which of the Following Qualitative Characteristic of Useful Accounting Information

question 34

Multiple Choice

Which of the following qualitative characteristic of useful accounting information implies that only items that meet or exceed certain thresholds will affect decisions?

• A) Conservatism
• B) Materiality
• C) Relevance
• D) Comparability

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Definitions:

Factoring Accounts Receivable

The financial practice of selling a business's invoices to a third party to secure immediate cash flow.

SBA Loans

Loans backed by the Small Business Administration designed to help small businesses get started, expand, or recover.

7(a) Program

A U.S. Small Business Administration (SBA) loan program designed to provide financial assistance to small businesses.

Trade Credit

A business arrangement where a buyer is allowed to purchase goods or services and pay the supplier at a later scheduled date.