Accounting information should make a difference to the outcome of a decision,according to the qualitative characteristic of
A)faithful representation.
B)relevance.
C)consistency.
D)understandability.

Question

Quizplus · Accepted Answer

Relevance is one of the qualitative characteristics of accounting information, which means that it should have an impact on the user's decision-making. It is important for the information to be related to the decision and have predictive or feedback value. Faithful representation refers to the accuracy and completeness of the information, consistency relates to the uniformity of the accounting methods used, and understandability refers to the clarity and user-friendliness of the information. While these characteristics are important, relevance is the most directly applicable to decision-making.

Accounting Information Should Make a Difference to the Outcome of a Decision,according