Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following is a characteristic of relevance in accounting information?

The information is verifiable by independent observers.

The information is presented in a consistent manner over time.

The information is free from material error and bias.

The information is capable of making a difference in users' decisions.

Previous problemNext problem

Verified step by step guidance

Understand the concept of relevance in accounting information: Relevance refers to the ability of information to influence the decision-making process of users. It must be capable of making a difference in their decisions.

Review the characteristics of relevance: Relevant information should be timely, predictive, and confirmatory. It helps users assess past, present, or future events or confirm/correct prior expectations.

Analyze the options provided: Evaluate each option to determine whether it aligns with the definition of relevance. For example, verifiability, consistency, and freedom from error are characteristics of reliability, not relevance.

Focus on the correct characteristic: The correct answer is the option stating that the information is capable of making a difference in users' decisions, as this directly aligns with the definition of relevance.

Conclude the reasoning: Relevance is about the usefulness of information in decision-making, distinguishing it from other qualities like reliability or comparability.