The Logical Connection Between an Item of Evidence and the Fact

question 2

Multiple Choice

The logical connection between an item of evidence and the fact of consequence to be proved is the:

• A) Materiality
• B) Relevance
• C) Probative value
• D) None of the above

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Definitions:

Mutually Exclusive

Decisions or events that cannot occur at the same time, implying that the selection of one precludes the selection of another.

Pay Back

The time period required for an investment to generate cash flow sufficient to recover its initial cost.

Cash Flows

The total amount of money being transferred into and out of a business, especially considered as affecting liquidity.

Shareholder Wealth

The total value of shares held by investors in a company, often used as a measure of company’s financial health and management performance.