Characteristics Associated with Relevant Accounting Information Are

question 51

Multiple Choice

Characteristics associated with relevant accounting information are

• A) comparability and timeliness.
• B) predictive value and confirmatory value.
• C) neutral and verifiable.
• D) consistency and understandability.

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Definitions:

Projected Annual Cash Inflow

An estimate of the total money expected to be received by a company over a year from its operational activities.

Net Present Value

Net present value (NPV) is a financial calculation used to assess the profitability of an investment or project, by discounting all expected future cash flows to their present value using a specific discount rate.

Payback Period

The time it takes for an investment to generate enough cash flow to recover its initial cost, used in capital budgeting to evaluate investment efficiency.

Straight-Line Depreciation

A plan for breaking down the expense of a real asset across its viable life in steady annual segments.