Which qualitative characteristic of financial information focuses on the inclusion of relevant information?
A) Faithful representation
B) Materiality
C) Comparability
D) Cost constraint

Question

Quizplus · Accepted Answer

Materiality is the qualitative characteristic that focuses on the inclusion of relevant information. Information is considered material if it has the potential to influence the economic decisions of users based on its nature or amount. Therefore, financial information should include all material information to ensure its relevance.

Which Qualitative Characteristic of Financial Information Focuses on the Inclusion