Examlex
If the average rate of return on an asset exceeds the minimum acceptable rate of return for investments,the asset should be purchased.
Predictive Value
The capability of financial information to help users make accurate forecasts about future events or outcomes.
Confirmatory Value
The aspect of relevant financial information that helps users of financial statements confirm or correct prior expectations.
Mispriced Security
A financial security (such as a stock or bond) that is selling for a price significantly different from its intrinsic value.
Faithful Representation
An accounting principle that financial data must be complete, neutral, and free from error, accurately representing the financial reality.
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