Identify the Accounting Concept or Principle That Relates to the Statement

question 42

Multiple Choice

Identify the accounting concept or principle that relates to the statement in each of the following questions:
-The financial statements need to contain information that is useful to decision-makers.

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

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Definitions:

Chief Executive Officer

The highest-ranking officer in a company or organization, who is responsible for making major corporate decisions.

Independent Contractor

An individual or entity contracted to perform work for another entity as a non-employee, typically responsible for paying their own taxes and benefits.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make key decisions for a corporation.

Liability

Refers to legal responsibility for one's actions or omissions, typically resulting in the obligation to pay damages or compensation.