If Accounting Information Has Predictive Value, It Is Useful in Making

question 81

Multiple Choice

If accounting information has predictive value, it is useful in making predictions about

• A) the potential effects of past, present, and future events of a company.
• B) future Canada Revenue Agency audits.
• C) foreign currency exchange rates.
• D) new accounting principles.

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Definitions:

Financial Position

A summary of the resources, obligations, and worth of an entity at a specific point in time, usually reflected in a balance sheet.

Year-End Financial Statements

Reports prepared at the end of an accounting period, summarizing the financial status and operating results of a business.

Management

involves the activities of setting the strategy of an organization and coordinating the efforts of its employees or volunteers to achieve its objectives.

Withdrawals

The act of taking out funds from a bank account or the removal of assets from a business by the owner for personal use.