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:

Expected Value

The long-run average value of repetitions of an experiment it represents.

Metric System

A decimal system of weights and measures based on the meter, liter, and gram as units of length, capacity, and weight or mass, respectively.

Centimeter

A unit of length in the metric system, equal to one hundredth of a meter, commonly used for measuring small distances.

Millimeter

A metric unit of length equal to one thousandth of a meter.