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:

Creditor

An individual, organization, or entity that is owed money or other forms of compensation by a debtor.

Res Ipsa Loquitur

“The thing speaks for itself.”

Transfer of Possession

The act of moving the control or ownership of property from one person to another.

Disclaimer of Liability

A statement that seeks to limit one’s responsibility for any harm or damage that may occur from the use of a service or product.