For a financial report to be relevant, it must
A) be free from material misstatement.
B) have an impact on the decisions made by users regarding the performance of the entity.
C) be periodically audited by an independent auditor.
D) none of the above

Question

Quizplus · Accepted Answer

The relevance of a financial report is directly related to its ability to influence users' decisions regarding the performance of the entity. Material misstatements and periodic audits by independent auditors may contribute to the accuracy and reliability of the report, but they do not guarantee its relevance.

For a Financial Report to Be Relevant, It Must