Which statement best explains the qualitative characteristic of “relevance”?
A. Financial reports should be understandable to the users of the information.
B. Omitting information would influence a user’s economic decision.
C. Information should influence a user’s economic decisions.
D. Financial reports should be accurate and complete.
Answer:C
Which statement best explains the qualitative characteristic of “relevance”?
A. Financial reports should be understandable to the users of the information. B. Omitting information would influence a user’s economic decision. C. Information should influence a user’s economic decisions. D. Financial reports should be accurate and complete.