The Two Fundamental Qualities That Make Accounting Information Useful for Decision

question 118

Multiple Choice

The two fundamental qualities that make accounting information useful for decision making are

• A)comparability and consistency.
• B)materiality and timeliness.
• C)relevance and faithful representation.
• D)reliability and comparability.

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Definitions:

Compounded Monthly

The process of calculating interest using the principle plus previously earned interest as the new principle each month.

9%

An interest rate or percentage that signifies a nine percent value attached to financial products or calculations.

Compounded Semi-Annually

The process of adding interest to the principal sum twice a year, where interest earns more interest in subsequent periods.

Compounded Quarterly

Interest is calculated four times a year on the initial principal and the added interest from previous periods.