James Cook Ltd bought a piece of land 10 years ago and the market value of this property is now worth 5 times its purchase cost.The accountant suggested that James Cook Ltd should revalue the asset.This notion is consistent with the qualitative characteristic of:
A)relevance.
B)reliability.
C)understandability.
D)comparability.
E)materiality.

Question

Quizplus · Accepted Answer

The accountant's suggestion for James Cook Ltd to revalue the asset, which is now worth 5 times its purchase cost from 10 years ago, is consistent with the qualitative characteristic of relevance.

James Cook Ltd Bought a Piece of Land 10 Years