In Order for Accounting Information to Be Relevant, It Must

question 217

Multiple Choice

In order for accounting information to be relevant, it must

• A) have very little cost.
• B) help predict future events or confirm prior expectations.
• C) not be reported to the public.
• D) be used by a lot of different firms.

---

Definitions:

Cash Break-even

The point at which a business generates just enough revenue to cover its operating cash expenditures.

Contingency Planning

The process of preparing for potential future situations or emergencies, particularly those that might disrupt operations.

NPV

Net Present Value, a method used in capital budgeting to assess the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Conventional Capital Budgeting

A process of planning and evaluating large-scale investments and expenditures to optimize a company's capital expenditures and investments.