If accounting information has predictive value, it is useful in making predictions about
A) the economic environment the company operates in.
B) world events that impact the economy.
C) future interest rates and foreign currency exchange rates.
D) future events of a company.

Question

Quizplus · Accepted Answer

Accounting information with predictive value helps stakeholders make forecasts or predictions about a company's future financial performance, including revenues, expenses, cash flows, and other financial conditions. It does not directly predict broader economic conditions, world events, or specific financial market rates like interest or exchange rates.

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