The use of a company's financial statements to assess a new share offering would rely most heavily on which of the following characteristics of information?
A)Verifiability
B)Relevance
C)Going concern assumption
D)Unit of measure assumption

Question

Quizplus · Accepted Answer

The most important characteristic of information used to assess a new share offering would be its relevance. The financial statements would need to provide relevant information about the company, such as its financial performance, assets, liabilities, and risks, in order to help potential investors make informed decisions about whether to invest in the new share offering. While verifiability, the going concern assumption, and the unit of measure assumption are all important characteristics of financial information, relevance is the most important in this particular context.

The Use of a Company's Financial Statements to Assess a New