The Best Explanation of Relevance Is

question 46

Multiple Choice

The best explanation of relevance is:

• A)ensuring the benefit of the information is greater than the cost of providing it.
• B)ensuring that information is expressed as clearly as possible.
• C)ensuring that information is useful for decision-making.
• D)ensuring that information is free from bias.

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Definitions:

Par Value

The nominal or face value of a stock or bond as stated by the issuing company, not necessarily reflecting its market value.

Legal Capital

Minimum amount of capital that a corporation must leave in the company (cannot be withdrawn by stockholders) for the protection of the creditors.

Stated Value

A value assigned to no-par stock by the company's board of directors.