The characteristic of accounting information that requires financial reports to be expressed as clearly as possible and to be capable of being understood by those they are addressed to, is known as:
A)understandability.
B)reliability.
C)cost versus benefit test.
D)relevance.

Question

Quizplus · Accepted Answer

Understandability is the characteristic that requires financial reports to be clear and easily understandable to their intended audience. This ensures that users of the information are able to comprehend its meaning and make informed decisions based on the information provided.

The Characteristic of Accounting Information That Requires Financial Reports to Be