Which of the Following Activities Include Transactions and Events Whereby

question 72

Multiple Choice

Which of the following activities include transactions and events whereby cash is obtained from or repaid to creditors or owners?

• A)Financing activities
• B)Investment activities
• C)Auditing activities
• D)Risk assessment activities

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Definitions:

Revenue Recognition

The accounting principle that determines the specific conditions under which income becomes realized as revenue.

Feedback Value

The information obtained from assessing a decision or process that is used to make improvements or adjustments.

Relevance

A characteristic of financial information that is capable of making a difference in the decisions made by users.

Decision Usefulness

The quality of financial information that helps users make informed decisions regarding investment, credit, and similar activities.