If Financial Information Is Relevant, This Means That

question 237

Multiple Choice

If financial information is relevant, this means that

• A) decision makers can depend on it
• B) it can affect the types of decisions made by users
• C) the information is prepared using the same accounting procedures from one accounting period to the next
• D) users are able to compare different companies, if all the companies use similar accounting practices
• E) the financial statements have not been prepared according to GAAP

---

Definitions:

Theory of Innovations

A conceptual framework that explains how new ideas, products, and practices spread within a society or from one society to another, often driving economic growth and social change.

Unemployment Insurance Benefits

Financial payments made by the government to individuals who are unemployed and meet certain eligibility requirements.

Discouraged Worker

An individual who is not actively seeking employment due to a belief that no jobs are available for them or there are no suitable job vacancies.

Structurally Unemployed

Individuals who are unemployed due to a mismatch between their skills and the needs of the job market, often because of technological changes or shifts in the economy.