To Be Useful,accounting Information Must Have the Fundamental Qualitative Characteristics

question 18

Multiple Choice

To be useful,accounting information must have the fundamental qualitative characteristics of:

• A)comparability and relevance.
• B)relevance and faithful representation.
• C)materiality and understandability.
• D)faithful representation and timeliness.

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Definitions:

Bounded Rationality

A concept that decision-makers are limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.

Temporal Immediacy

The urgency or closeness in time of an event, emphasizing the importance of timely action or response.

Rationality Limitations

Constraints on an individual's ability to think and make decisions in a logical and clear-headed manner.

Bounded Rationality

Refers to the concept that in decision-making, an individual's rationality is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision.