Disclosing the Market Value of a Short-Term Investment Is an Example

question 10

Multiple Choice

Disclosing the market value of a short-term investment is an example of which of the following characteristics of accounting information?

• A)Relevance
• B)Timeliness
• C)Neutrality
• D)Consistency

---

Definitions:

Direct Costs

Expenses that can be directly tied to the production of specific goods or services, such as labor and materials.

Floatation Costs

The various costs associated with taking a company public, including legal, accounting, and marketing expenses, among others.

Firm Commitment

A definitive promise by an underwriter to purchase all of an issuer's securities at a specified price for resale to the public.

Going Private

A corporate transaction in which the entire equity of a publicly traded firm is purchased by a small group of investors.