The Two Fundamental Qualities of Useful Information Are

question 137

Multiple Choice

The two fundamental qualities of useful information are

• A)relevance and faithful representation.
• B)verifiability and timeliness.
• C)comparability and flexibility.
• D)understandability and consistency.

---

Definitions:

Discount Rate

The rate utilized in DCF analysis for estimating the present value of future cash flows.

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for running day-to-day operations.

Salvage Value

The anticipated end value of an asset after exhausting its useful life.

Discount Rate

The interest rate used to calculate the present value of future cash flows.