Under Statement of Financial Accounting Concepts No.8,which of the following is an ingredient of the primary quality of relevance?
A)Neutrality
B)Completeness
C)Understandability
D)Verifiability

Question

Quizplus · Accepted Answer

According to Statement of Financial Accounting Concepts No.8, the primary quality of relevance includes two ingredients: completeness and predictive value. Of the options given, only B) Completeness is an ingredient of relevance. A) Neutrality is an ingredient of the secondary quality of faithful representation, C) Understandability is an ingredient of the primary quality of understandability, and D) Verifiability is an ingredient of the secondary quality of faithful representation.