What Are the Four Key Qualities of Accounting Information

question 34

Multiple Choice

What are the four key qualities of accounting information?

• A)Relevance, reliability, comparability and understandability
• B)Identification, analysis, reliability and timeliness
• C)Planning, control, comparability and analysis
• D)Understandability, identification, analysis and relevance

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Definitions:

Utility Maximizer

An individual or entity that seeks to achieve the highest level of satisfaction possible from their consumption choices, given their resources.

Net Seller

An individual or entity that sells more than it purchases in a given market, often resulting in a net inflow of funds.

Net Buyer

An entity or individual that purchases more of a commodity or asset than they sell in a specific period.

Normal Goods

Goods for which demand increases when consumer income increases, and falls when consumer income decreases, all else being equal.