In Order to Be Relevant, Accounting Information Must

question 1

Multiple Choice

In order to be relevant, accounting information must:

• A) be neutral.
• B) be verifiable.
• C) help predict future events.
• D) be a faithful representation.

---

Definitions:

Loans

Financial agreements where a lender provides funds to a borrower with the expectation of repayment plus interest.

Financing Activities

Transactions involving obtaining or repaying capital and funds used to finance the company's operations and expansions.

Issuance

The process of making securities available for sale to the public or the act of issuing new shares of stock by a company.

Cash Flows

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