Which of the Following Is a Characteristic of Information

question 45

Multiple Choice

Which of the following is a characteristic of information? 

• A) ​Information specifically contains figures. 
• B) ​Information is useful even when it is inaccurate. 
• C) ​Information has context attached to it. 
• D) ​Incomplete information helps in recognizing problems.

Recognize the difference between financial and managerial accounting objectives.

Understand how to prepare and interpret the statement of cash flows.

Understand the impact of various transactions on the accounting equation.

Prepare and understand the statement of stockholders' equity.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace for loans, savings, and investments, also reflecting the cost of borrowing money.

Weighted Average Cost

The calculation that takes into account the varying costs of goods and the quantity of each, to determine an average cost.

Preferred Stock

A class of stock that typically has a priority claim on dividends and assets in the event of liquidation over common stock.

Yield

The income return on an investment, such as the interest or dividends received, expressed as an annual percentage of the investment’s cost.