Relevance Is an Objective of External Financial Reporting That Means

question 104

Multiple Choice

Relevance is an objective of external financial reporting that means:

• A)the financial reports of a business are assumed to include the results of only that business's activities.
• B)financial information can be compared across businesses because similar accounting methods have been applied.
• C)the financial information possesses a feature that allows it to influence a decision.
• D)the financial information depicts the economic substance of business activities.

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Definitions:

Production Levels

The quantity of goods or services that a company can produce within a specified period of time.

Determinant

A numerical value derived from the components of a square matrix, capturing specific characteristics of the matrix.

Triangle

A polygon with three edges and three vertices.

Determinant

A number obtained from a square matrix's elements that represents some of the matrix's attributes.