In Order for Accounting Information to Be Relevant, It Must

question 217

Multiple Choice

In order for accounting information to be relevant, it must

• A) have very little cost.
• B) help predict future events or confirm prior expectations.
• C) not be reported to the public.
• D) be used by a lot of different firms.

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Definitions:

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a certain price.

Supply

The total amount of a specific good or service that is available to consumers at a given time.

Usury Law

Legislation that imposes a maximum interest rate creditors can charge borrowers to protect consumers from excessively high rates.

Quantity

The amount or number of a material or immaterial thing not usually estimated by spatial measurement.