Identify the Accounting Concept or Principle That Relates to the Statement

question 23

Multiple Choice

Identify the accounting concept or principle that relates to the statement in the following statement: Information should have predictive value and/or feedback value.

• A) Relevance
• B) Faithful representation
• C) Materiality
• D) Comparability

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Definitions:

Marginal Opportunity Cost

By deciding on one route, one foregoes the possible advantages that other routes could have offered.

Long-run Equilibrium

The state in which, over time, supply and demand are balanced, and all adjustments to economic conditions have been made, resulting in stable prices and outputs.

Marginal Cost

The hike in expense for producing another unit of a product or service.