The Qualitative Characteristic That Says Accounting Information Can Influence Users

question 106

Multiple Choice

The qualitative characteristic that says accounting information can influence users' decisions by allowing them to assess past performance is:

• A)Timeliness.
• B)Neutrality.
• C)Confirmatory value.
• D)Predictive value.

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Definitions:

Normative Economic Statement

Statements that reflect opinions, beliefs, or values about what the economy should be like, rather than what it actually is.

Inflation Rate

The rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Energy Prices

The cost of energy resources, such as oil, gas, and electricity, which can fluctuate based on supply and demand.

Automobile Companies

Businesses involved in the design, development, manufacturing, marketing, and selling of motor vehicles.