In Order for Accounting Information to Be Useful in Making

question 34

Multiple Choice

In order for accounting information to be useful in making informed decisions, it must be

• A)relevant
• B)reliable
• C)both relevant and reliable
• D)nether relevant nor reliable

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Definitions:

Inter-Entity Transactions

Transactions occurring between two parts of the same company, often requiring elimination adjustments in consolidated financial statements.

NCI

Non-controlling interest, a portion of the equity in a subsidiary not attributable directly or indirectly to the parent company.

Profit

The financial gain realized when the revenues generated from business activities exceed the expenses, taxes, and costs associated with maintaining the business.

Inter-Entity Transactions

Transactions that occur between two entities within the same parent company or corporate group, affecting the accounting practices and consolidation processes of the group.