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:

Credit and Loans

Financial products that allow individuals or entities to borrow money, typically with the promise of repayment at a future date along with interest.

Investment-Demand

The relationship showing the amounts of investment goods purchased at different rates of interest.

Expected Rate of Return

The anticipated profit or loss on an investment, often based on historical data or statistical analysis.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage rate.