Which of the Following Is a Characteristic of Financial Accounting

question 96

Multiple Choice

Which of the following is a characteristic of financial accounting information?

• A)Its preparation requires judgment.
• B)It is more about the future than it is about the past.
• C)None of it is based on estimates,assumptions,and judgments.
• D)Notes and explanations from management are not included.

---

Definitions:

Price System

A mechanism through which prices adjust to balance supply and demand for goods and services in an economy.

Centralized Planning

A system of economy where all choices related to the creation and allocation of goods and services are made by a central governmental body.

Competitive Markets

Markets where many buyers and sellers trade goods and services under conditions of few restrictions, leading to the best prices for both parties.

Opportunity Cost

The advantage lost by selecting one option instead of another.