Under SFAC No

question 8

Multiple Choice

Under SFAC No. 8, which of the following are aspects of relevance?

• A)Comparability and understandability
• B)Timeliness and comparability
• C)Representational faithfulness and decision usefulness
• D)Predictive value and confirmatory value

---

Definitions:

Unearned Revenue

Money received by a company for goods or services yet to be provided. It is considered a liability until the service is delivered or the product is provided.

Investments

Assets purchased with the aim of generating income or appreciation, including securities, real estate, and other financial assets.

Wages Payable

A liability account that records the amount of unpaid wages earned by employees at the end of a reporting period.

Debit to Cash

An accounting entry that increases the cash balance in the company's ledger, reflecting an inflow of cash.