Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 2 - A Further Look at Financial Statements - Brief Exercises - Page 75: BE2-9

Answer

a) relevant b) faithful representation c) consistency

Work Step by Step

Relevant information allows the user to make accurate predictions about the future and confirms or corrects past predictions. Information that is presented faithfully is accurate information. Consistent accounting practices allow meaningful comparisons between data from different years, which creates consistency.
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