The Two Primary Qualities of Accounting Information to Make It

question 68

Multiple Choice

The two primary qualities of accounting information to make it useful for decision making are:

• A) reliability and comparability.
• B) relevance and reliability.
• C) materiality and comparability.
• D) full disclosure and relevance.

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Definitions:

Minimum Percentage

The lowest allowable or required fraction or rate of a quantity, often set as a standard or threshold.

Assets

Resources owned by a company, regarded as having value and available to meet debts, commitments, or legacies.

Invest

The action of allocating resources, usually financial, with the expectation of achieving a profit or material result.

ESOPs

Employee Stock Ownership Plans; these provide company stocks to employees as part of a retirement plan or incentive program.