The Value of Information Can Best Be Determined by

question 63

Multiple Choice

The value of information can best be determined by

• A)its usefulness to decision makers.
• B)its relevance to decision makers.
• C)the benefits associated with obtaining the information minus the cost of producing it.
• D)the extent to which it optimizes the value chain.

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Definitions:

Current Ratio

A financial ratio that expresses the relationship between current assets and current liabilities, computed by dividing current assets by current liabilities.

Marketable Securities

Financial instruments that can be easily converted into cash, often used for short-term investments by companies.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Current Assets

Assets that are expected to be converted into cash, sold or consumed within a year or within the operating cycle of a business, such as cash, marketable securities, inventory, and accounts receivable.