Relevance is defined as
A)choosing accounting policies without attempting to achieve purposes other than measuring economic impact.
B)the capability of information to make a difference to the decision maker.
C)the quality of information that allows users to depend on it to represent the conditions or events that it purports to represent.
D)a correspondence between the accounting numbers and the resources or events those numbers purport to represent.
E)a quality of information such that there would be a high extent of consensus among independent measurers of an item.

Question

Quizplus · Accepted Answer

Relevance is all about making a difference to the decision-maker. In other words, relevant information is capable of influencing the decisions that users make. Therefore, option B is the best choice as it clearly defines relevance.

Relevance Is Defined as