An event that affects assets, liabilities, or shareholders' equity is considered to be

Question

Quizplus · Accepted Answer

An event that affects assets, liabilities, or shareholders' equity is considered relevant because it has an impact on the financial position of the company. Relevance is a key characteristic of financial information, which means that it is capable of making a difference in the decisions made by users of the information. Timeliness and objectivity are also important characteristics of financial information, but they are not the best choice for this question because they do not directly relate to events that affect assets, liabilities, or shareholders' equity. Capitalization is the process of recording an expenditure as an asset rather than an immediate expense and is not relevant to this question.

An Event That Affects Assets, Liabilities, or Shareholders' Equity Is