What Are the Attributes of Relevant Information

question 75

Multiple Choice

What are the attributes of relevant information?

• A) predictive value, timeliness, free from error
• B) materiality, predictive value, and confirmatory value
• C) comparability, verifiability, and predictive value
• D) complete, neutral, free from error

Understand the various types of preferred stock and their features regarding dividends.

Recognize the accounting for the issuance of common and preferred stock.

Understand the reasons corporations might buy back their own stock and the implication of treasury stocks.

Understand the concept and calculation of treasury stock and its impact on shareholders' equity.

---

Definitions:

Return Ratio

A measure of the profitability or effectiveness of an investment, calculating how much returns are gained relative to the investment's cost.

Common Stockholders' Equity

The portion of a company's equity that is attributable to the holders of its common stock.

Leverage

The use of debt to increase the return on an investment.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company uses its assets by calculating the number of times average accounts receivable are collected during a specific period.