Relevance Is an Objective of External Financial Reporting That Means

question 104

Multiple Choice

Relevance is an objective of external financial reporting that means:

• A)the financial reports of a business are assumed to include the results of only that business's activities.
• B)financial information can be compared across businesses because similar accounting methods have been applied.
• C)the financial information possesses a feature that allows it to influence a decision.
• D)the financial information depicts the economic substance of business activities.

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Definitions:

Chiral

Describes a molecule that cannot be superimposed on its mirror image, often resulting in different biological activities for each form.

Achiral

Lacking chirality; not having a non-superimposable mirror image.

Asymmetric Carbon

An asymmetric carbon, also known as a chiral carbon, is a carbon atom that is attached to four different groups, making its mirror image not superimposable on itself.

R or S

A system for specifying the configuration of chiral centers in molecules, based on the CIP (Cahn-Ingold-Prelog) priority rules.