Relevant Accounting Information

question 133

Multiple Choice

Relevant accounting information

• A) is information that has been audited.
• B) must be reported within the operating cycle or one year whichever is longer.
• C) has been objectively determined.
• D) is information that is capable of making a difference in a business decision.

---

Definitions:

Note Receivable

A financial asset representing a written promise to receive a specific amount of money at a future date.

Dishonored Note

A promissory note that has not been paid by the maker at the time of maturity, resulting in default.

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to another, either at a fixed or determinable future time or on demand.

Interest

The cost of borrowing money, typically expressed as an annual percentage of the principal amount.