To Understand and Use Accounting Information in Making Economic Decisions

question 86

Multiple Choice

To understand and use accounting information in making economic decisions, you must understand:

• A) The nature of economic activities that accounting information describes.
• B) The assumptions and measurement techniques involved in developing accounting information.
• C) Which information is relevant for a particular type of decision that is being made.
• D) All of the above.

---

Definitions:

10% More

Indicates an increase or addition of ten percent to a given number or value.

7% Less

A reduction by seven percent from a previous amount or value.

Standard & Poor's 500

An American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE or NASDAQ.

Stock Index

A statistical measure that shows changes in the stock market by tracking selected stocks' prices.