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:

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased at given prices and within a given budget.

Interest Rate

The percentage at which interest is paid by borrowers for the use of money that they borrow from a lender.

Inflation Rate

The percentage increase in the general level of prices for goods and services over a certain period, reflecting the decreasing purchasing power of money.

Rational Person

An individual who systematically and logically evaluates options to make decisions that maximize their personal benefit or utility.