The Qualitative Characteristic That Says the Value of Information Should

question 84

Multiple Choice

The qualitative characteristic that says the value of information should exceed the cost of preparing it is called

• A)relevance.
• B)understandability.
• C)cost constraint.
• D)verifiability.

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Definitions:

Law Firm

A business entity formed by one or more lawyers to engage in the practice of law, providing advice to clients and representing them in legal matters.

Expense Accounts

Accounts used to track the expenditures incurred by a business, categorized for financial reporting and analysis.

Debit Balances

Amounts owed in an account, typically representing assets or expenses, that indicate the total charges or costs.

Net Income

The sum a company retains as profit after removing costs, expenses, and taxes from its total income.