If accounting information has predictive value, it is useful in making predictions about
A) the potential effects of past, present, and future events of a company.
B) future Canada Revenue Agency audits.
C) foreign currency exchange rates.
D) new accounting principles.

Question

Quizplus · Accepted Answer

If accounting information has predictive value, it means that it can be used to make predictions about the potential effects of past, present, and future events of a company. This is because predictive value refers to the ability of accounting information to provide insight into the future by helping users make predictions about what might happen. Choices B, C, and D are not necessarily relevant to the concept of predictive value in accounting information.

If Accounting Information Has Predictive Value, It Is Useful in Making