At times, reliability must be sacrificed in order to enhance the relevance of accounting information.

Question

Quizplus · Accepted Answer

In certain situations, such as when making estimates or projections, accounting information may need to rely on assumptions or forecasts that are uncertain, which can reduce its reliability. However, in order to provide information that is more relevant and useful to decision-makers, this trade-off may be necessary.

At Times, Reliability Must Be Sacrificed in Order to Enhance