To be relevant, accounting information must:
A) be capable of making a difference in a decision.
B) be presented on the balance sheet.
C) be recorded at historical cost.
D) improve the company's internal control.

Question

Quizplus · Accepted Answer

For accounting information to be relevant, it must have the ability to make a difference in a decision that is being made. This means that the information must be able to impact the outcome of a decision in some way or provide insight that can influence the decision-making process. The other options listed do not necessarily relate to relevance. Presentation on the balance sheet, recording at historical cost, and improving internal control are all important aspects of accounting, but they do not solely determine if information is relevant.

To Be Relevant, Accounting Information Must