What Are the Two Characteristics of Reliable Information

question 2

Multiple Choice

What are the two characteristics of reliable information?

• A) Representational faithfulness and verifiability
• B) Timeliness and representational faithfulness
• C) Verifiability and relevance
• D) Representational faithfulness and relevance

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Definitions:

Fair Value

A market-based measurement that represents the price at which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.

Normative Theories

Theories that prescribe how the world should be or how ethical dilemmas should be resolved, based on values and principles.

Monitoring Costs

Expenses associated with the oversight and management of investments or other financial activities to ensure compliance and performance objectives.

Bonding Costs

Expenses associated with obtaining bonds that guarantee the performance of a contract or the fulfillment of an obligation.