In order for accounting information to be useful in making informed decisions,it must be
A)relevant.
B)reliable.
C)neither relevant nor reliable.
D)both relevant and reliable.

Question

Quizplus · Accepted Answer

Accounting information must be both relevant and reliable to be useful in making informed decisions. Relevant information is information that is applicable to the specific decision being made, and reliable information is information that is accurate and trustworthy. If information is relevant but not reliable, it can still lead to incorrect decisions. Similarly, if information is reliable but not relevant, it may not be useful in making the specific decision at hand. Therefore, accounting information must meet both criteria to be useful.

In Order for Accounting Information to Be Useful in Making