Relevance is an objective of external financial reporting that means:
A)the financial reports of a business are assumed to include the results of only that business's activities.
B)financial information can be compared across businesses because similar accounting methods have been applied.
C)the financial information possesses a feature that allows it to influence a decision.
D)the financial information depicts the economic substance of business activities.

Question

Quizplus · Accepted Answer

Information is relevant if it makes a difference in decision making and it is a faithful representation if it fully depicts the economic substance of business activities.

Relevance Is an Objective of External Financial Reporting That Means