Which Qualitative Characteristic of Financial Information Alleviates "Moral Hazard

question 17

Multiple Choice

Which qualitative characteristic of financial information alleviates "moral hazard"?

• A)Neutrality.
• B)Predictive value.
• C)Timeliness.
• D)Comparability.

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Definitions:

Direct Payments

Cash transfers from governments or organizations to individuals, farmers, or businesses without any requirement for goods or services in return.

Federal Tax Receipts

The income received by the federal government from taxes, used to fund government spending and services.

Marginal Rate

The marginal rate often refers to the incremental or additional rate of change in a quantity or cost in response to a change in some other variable.

Social Security System

A government program that provides financial assistance to retirees, disabled workers, and survivors of deceased workers.