According to GAAP, to Be Useful, Accounting Information Must Be

question 19

Multiple Choice

According to GAAP, to be useful, accounting information must be all of the following except:

• A)relevant.
• B)comparable.
• C)subjective.
• D)reliable.

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Definitions:

Danish Krones

The currency of Denmark, used as the primary means of exchange within the country.

Hedge Accounting

A method of accounting where entries for the ownership of a security and the opposing hedge are treated as one. It aims to reduce the volatility seen in financial statements.

Hedge Relationship

A connection between a hedging instrument and the risk it is intended to offset, ensuring that changes in the value of one are counterbalanced by changes in the other.

Exchange Gain

A profit resulting from holding or transacting in foreign currencies as exchange rates vary.