In Order to Be Relevant to a Decision, Cost or Benefit

question 107

Multiple Choice

In order to be relevant to a decision, cost or benefit information must involve ________, rather than ________.

• A) a past event; a future event
• B) actual data; estimated data
• C) a future event; a past event
• D) a past event; a current event

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Definitions:

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.

Note Payable

A written agreement where one party promises to pay another party a specific sum of money, either on demand or at a set future date.

Regulatory Agency

A governmental organization tasked with creating and enforcing rules to regulate and supervise specific industries or activities.

Internal Revenue Service

The federal agency responsible for enforcing U.S. tax laws and collecting taxes.