Relevant Accounting Information

question 133

Multiple Choice

Relevant accounting information

• A) is information that has been audited.
• B) must be reported within the operating cycle or one year whichever is longer.
• C) has been objectively determined.
• D) is information that is capable of making a difference in a business decision.

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Definitions:

Interest Rate

The proportion, typically expressed as a percentage, at which interest is charged by lenders on loans or paid by banks on deposits.

Cash Flows

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time.

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.