Accounting Information Is Considered to Be Relevant When It

question 86

Multiple Choice

Accounting information is considered to be relevant when it

• A) can be depended on to represent the economic conditions and events that it is intended to represent.
• B) is capable of making a difference in a decision.
• C) is understandable by reasonably informed users of accounting information.
• D) is verifiable and neutral.

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Definitions:

Promotions

Marketing efforts designed to increase awareness or sales of a product or service, including advertising, sales discounts, and special offers.

Data Visualization

The presentation of data and research results in pictorial or graphical format.

Reliability

The ability of a product or service to perform consistently and dependably over its intended lifespan.

Validity

The extent to which a research instrument measures what it is intended to measure.