According to Statement of Financial Accounting Concepts No

question 10

Multiple Choice

According to Statement of Financial Accounting Concepts No.2, which of the following relates to both relevance and reliability?

• A)Materiality
• B)Understandability
• C)Usefulness
• D)All of these

---

Definitions:

Predict Outcome

The process of forecasting or determining the probable results or consequences of a chemical reaction or experiment.

Self-condensation

A reaction in which a molecule undergoes condensation with itself to form a larger molecule, often in the presence of a catalyst.

Ester

Organic compounds derived from an acid where at least one –OH (hydroxyl) group is replaced by an –O– (alkoxy) group.

Aldol Reaction

A type of organic reaction where an enol or an enolate ion reacts with a carbonyl compound to form a beta-hydroxyaldehyde or beta-hydroxyketone, followed by dehydration to give a conjugated enone.