If Accounting Information Has Relevance, It Is Useful in Making

question 90

Multiple Choice

If accounting information has relevance, it is useful in making predictions about

• A)future IRS audits.
• B)new accounting principles.
• C)foreign currency exchange rates.
• D)the future events of a company.

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Definitions:

Bond Premium

The amount by which the market price of a bond exceeds its principal amount or face value.

Discount on Bonds Payable

The gap between a bond's face value and its market selling price, occurring when the bond sells below its nominal value.

Straight-Line Amortization

A method of reducing the carrying amount of an intangible asset over its useful life in equal amounts.

Bond Discount

The difference between the face value of a bond and the price for which it sells, when the bond's market price is lower than its face value.