Identify the Accounting Concept or Principle That Relates to the Statement

question 18

Multiple Choice

Identify the accounting concept or principle that relates to the statement in each of the following questions:
-Information must represent faithfully the transactions or events that have occurred.

• A) relevance
• B) reliability
• C) materiality
• D) prudence.

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Definitions:

Present Value

The current worth of a future sum of money, given a specific rate of return or discount rate.

Future Value

The value of an investment or cash at a specified future date, considering the interest rate or rate of return.

Term

A specific period or duration of time during which the conditions of a contract or agreement apply.

Annuity

A financial product that pays out a fixed stream of payments to an individual, primarily used as an income stream for retirees.