When Information About Two Different Enterprises Has Been Prepared and Presented

question 95

Multiple Choice

When information about two different enterprises has been prepared and presented in a similar manner, the information exhibits the characteristic of

• A) relevance.
• B) faithful representation.
• C) consistency.
• D) None of these answer choices are correct.

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Definitions:

Operating Activities

Business activities that relate directly to the production, sale, and delivery of a company's products or services.

Financing Activities

Transactions and events related to raising capital, repaying investors, issuing dividends, and loans that affect a company's capital structure and equity.

Net Cash

The difference between a company's total cash inflows and outflows in a given period.

Operating Activities

Activities directly related to the day-to-day operations of a business, such as selling products and services, which generate most of its revenue and cash flows.